To: Savoirman who wrote (11201 ) 5/6/1998 1:38:00 PM From: Rutgers Respond to of 13925
Sim's positive conference with analysts should begin to yield some positive results.... Excellent work, Savoirman All relevant points, however, some of them are really stand out:"...upside possible from the 20-25% revenue growth..." This comment alone should make all the institutions and mutual fund managers stand up and salute. Remember, for the last year and a half, Creative has only discussed a 10-15% growth target. Bottom Line: where else can you find a company where the P/E is in single digits, Price to Sales is less than 1.5, and revenues forecasted to rise 20-25-or better? Oh yeah, to boot, the Company will buy back One Hundred Million Dollars ($100,000,000.00) worth of stock.Creaf has managed to seal contracts with HP, Gateway, Micron, Fujitsu, NEC and Packard Bell for the ENSONIQ and AWE64D! More design wins is real news. Hopefully, our new IR consultant can see to it that this information is properly distributed. Furthermore, the reference to the AWE64D, if true, would also be news because this is a different PCI Sound Card that Creative has not released to date - it is based upon the EMU8008 Chipset - not to be confused with the SoundBlaster Live!, which is based upon the EMU10K1 Chipset.Long term future prospects - Creaf will raise standards in all segments so quickly that CPU-based or software based solutions will not be adequate or cost-competitive. Creaf will also participate in software solutions if CPU power becomes powerful enough (of course get paid for it) This comment shows Creative's understanding of the long term PC market - it reminds me of the answer that Sim gave to the analyst from DBS on the Conference Call In short, it sounds like we are well poised to take this stock to new highs before the end of this calendar year. Indeed, if the Dow cooperates, e.g. , stays above 9000, and significant volumes of the SB Live! are in the channel together with the 7.1 Speaker Set that all the gamers will drool over, I think we should approach or pass the $40 barrier by September - at the latest! Call me a Bull if you want. I'm proud of it.