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Technology Stocks : Creative Labs (CREAF) -- Ignore unavailable to you. Want to Upgrade?

To: Nazbuster who wrote (9727)	2/13/1998 9:03:00 PM
From: Jatin Kadakia	Respond to of 13925

If they plan to buy back 20% of shares, it is better done with dutch auction. i wonder if SES will allow that when buyback program is instituted. JK

To: Nazbuster who wrote (9727)	2/13/1998 9:08:00 PM
From: Brian Lempel	Read Replies (3) \| Respond to of 13925

Well, here's the newest spin on our recent rise: SINGAPORE - Creative Technology rose 1-3/16 to 23-3/4 in heavy trade that put its ADRs on the Nasdaq's most-active list. Traders said the rise was caused by Creative's introduction this week of new products, two sound cards. Doesn't seem likely to me...they will hype their SoundBlaster Live! intro. It was scheduled to ship this quarter, though, right? It just still seems strange that it would cause this big of a rise. I don't see INTC fitting, and a share buyback is only proposed on SI, and carries no wieght on the "street." I think for now, we have to assume that traders (and GS?) are buying into CREAF because of the Voodoo II early introduction, although I realize how little sense it makes. Has anyone given any thoughts as to the impact of the early introduction? What kind of volume are we looking at as a result of the early introduction? Is Voodoo II production going to mean a cutback on their Permedia board? Thanks, Brian

To: Nazbuster who wrote (9727)	2/13/1998 9:20:00 PM
From: Flint	Read Replies (1) \| Respond to of 13925

Share buyback impact on share price will be complex but largely positive for Creative. Here's my 2 cts worth. Why is it complex ? 1. Fundamentally, even if you don't think much of the use of the cash in the company when it is in the company, the market still pays something for it. Hence when this cash is used to retire shares, the total value of the company falls compensated by the reduction of the number of shares outstanding. 2. Fundamentally, a sharebuyback also signals confidence from management. That it thinks the shares are cheap. That it doesn't need the cash hoard i.e. financially strong. 3. Technically, the freefloat counts. Any strong buying of a share that is not all that liquid creates upward pressure. In addition, with all the technical traders around, the thought that this could happen will already spur net buying from a powerful pool of liquidity. Ultimately, the impact is positive, but the extent is anyone's guess.. really.