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

To: CPAMarty who wrote (11113)	4/29/1998 7:56:00 AM
From: Savoirman	Respond to of 13925

Inventory is a concern. Up about 15% from Q2. But many reasons for that. Remember Creaf used cash to get discounts from suppliers in exchange for money up front. Must have got supplies earlier too. Also, with so many new products in Q3 (PCI products, Voodoo2) inventory has to be larger (we were complaining not enough Voodoo2 remember?). Also making product for SB Live developers to test. With a cash position like Creaf's (compare Diamond), you can afford slightly higher inventory. Assuming a write off of 20% of the inventory, still less than 10% of cash of 375m. But I think Creaf will work to reduce inventory anyway, no need for write offs. It's "high quality" according to Craig McHugh. Anyway most of the inventory 60% is components, much less likely to get obsolete. Anybody got any analyst reports out there?