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

To: Brian Lempel who wrote (9729)	2/13/1998 9:43:00 PM
From: Dennis G.	Read Replies (2) \| Respond to of 13925

You know it's really amazing how we all are having a hard time explaining how CREAF could have risen to 23 3/4 when by all rights it should never have gotten this low in the first place. The company never did anything to deserve the level of punishment it got, and it's still grossly undervalued. This whole nightmare goes back to that wretched first week in December when one jerk dumped 6 million shares on the market at the worst time. And this created such a snowball of negative sentiment against the stock that just couldn't recover till now. It's taken some strong minded, powerful institutions willing to take a big chance to try to snap some sense back into the market concerning this stock. Why should this stock have to justify being in the low 20's when there's so much overpriced crap out there in the market? Beats me. "What a long, strange trip it's been." Dennis

To: Brian Lempel who wrote (9729)	2/13/1998 9:51:00 PM
From: Fred Fahmy	Read Replies (1) \| Respond to of 13925

Hi Brian, My take on this run; I don't believe the buyout theory especially if INTC is the rumored suitor. For one thing, I don't think for a minute the DOJ would approve especially in light of the recent CHPS acquisition. IMO, CPU + graphics chips + premiere sound standard would be too much Intel Inside for the DOJ to accept. I don't think they are going to let Intel monopolize the entire guts of the PC. At least in the graphics chips arena there are several other players (SIII, Trident, etc.). In the case of of sound, however, CREAF would give Intel virtual monopolies over two key internal components (CPU's and sound). I also find it impossible to accept that this run-up is product announcement related. I can't believe that all these institutions are suddenly jumping on the CREAF band wagon because of one product announcement. The Encore announcement was much much more significant and had much less of an affect. A stock buy back might be cause for a significant run-up but I don't think the SES would leak out this information to the big brokerage firms. What about this theory. CREAF is fundamentally extremely strong with a very bright future given their recent acquisitions, expanding product line (especially DVD), strong cash position, low P/E, and franchise brand recognition (due to Soundblaster). Perhaps their recent presentation at the investment conference sparked enough interest that some of the big players finally took notice and thought to themselves, "if we are going to establish a position, we better start now before it's too late". It would only take a few big players like GSCO to get things started. Perhaps others, who like us think CREAF is terribly undervalue, were waiting on the sidelines because until now they saw no urgency to establish position since it was moving sideways. However, seeing GSCO and a couple other big boys jumping in they might have suddenly developed a sense of urgency and piled on. At any rate what a run! Don't know if this was wise but I sold July 30 CC's today to protect some profits and lower my basis. Given my entry level and my target price of 35, 2 1/4 for the calls and 30 for the stock is close enough to my target and would suit me fine should I lose the shares. Now watch....someone will probably come and offer 40 for the company <GGG>. Good luck, FF

To: Brian Lempel who wrote (9729)	2/13/1998 10:14:00 PM
From: Market Tracker	Respond to of 13925

Trading volume the past 2 days was >10 million shares. Even considering the NASDAQ's double accounting on volume, there were certainly some large buy programs in effect. I wonder if the advance was related to a number of factors, GSCO meeting, Voodoo II earlier than expected introduction, and speculation of share buy-back becoming legal in Singapore. Maybe the big boys are just accumulating some significant positions so if the buy-back becomes reality, CREAF can buy it from them (at higher prices). To me the volume is telling the story. An early release of a new product most-likely can't generate the trading volume we've seen the past 2 days. The INTC takeover rumors are pipe dreams at best. Maybe the fundamentals of the company are finally getting some recognition in the marketplace, and the P/E is being adjusted upward accordingly, but JMO. MT