Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Doug Fowler who wrote (10914)	4/19/1998 8:52:00 AM
From: Fred Fahmy	Read Replies (2) \| Respond to of 13925

Hi Doug, I think that CREAF has plenty to offer on the low end. In fact, you currently can get Soundblaster 16 products for $45 and their 32X CR-ROM drive for $86. I think they know how to play at the low end. Also, the integration of sound that already exists on many motherboards uses the Vibra chip (a one chip sound solution) which is a CREAF product. These have been around for quite some time. Also, the recent Ensoniq acquisition gives CREAF dominance in low end (i.e. cheap) PCI sound. CREAF definitely knows about cheap sound as well as high end. I think in the future CREAF will be able to profit from both the high end and the low end quite nicely. As for integration per se, I am not a big fan in general. I find it usually leads to inferior function and less flexibility. At one time there were a lot of motherboards with integrated video graphics. This concept did not last very long. There has been talk for years about integrating modem functions, video functions etc. Don't get me wrong, integration has its place (e.g. cheap, almost "disposable" PC's), but so does modularity. As for $1000 PC's in general, I personally think that their effect, although significant, is being greatly exaggerated. I look at the most successful profitable PC company in the world by far right now (DELL) and notice that they don't play in this segment at all. For people interested in high powered applications or even serious gaming, the cheap PC's are simply not attractive. For web browsing they are fine....at least for now when bandwidth is the gate. If the bandwidth gate is ever opened and people are getting video/voice on demand will see how cheap PC's fair. I continue to think that CREAF's greatest advantage is their ability to offer a complete multi-media solution including sound, video, speakers, and drives. No talk yet of integrating drives and speakers into CPU's <ggg>. The franchise Souldblaster name is also a major asset. At any rate, should NSM or INTC or anyone else get real serious about providing multi-media solutions, I think that CREAF would be a prized acquisition that would command a significant premium. Re: High End There is a lot of opportunity here as well....not just for audiophiles. More and more "joe blows" are getting interested in quality home theatre type entertainment. As prices come down and people upgrade equipment I think quality sound will generally be more in demand. I wish I was in at 13....I'm having to be even more patient <ggg>, and this stock definitely has required a lot of patience over the last 12 months. The key will be results. If CREAF continues to deliver on the numbers, the stock price will take care of itself. There are still a lot of non-believers...each quarter of good earnings will add that much more credibility to CREAF's strategy. I think your questions and concerns are good ones. I also think that these are issues that Sim and CREAF management are aware off and are addressing. I don't think they are looking past the low end for a minute and expect continued offerings across all price ranges. Good luck, FF