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: BZOOKA who wrote (11441)	5/27/1998 8:34:00 AM
From: Rutgers	Read Replies (1) \| Respond to of 13925

Creative's new PR firm is earning its fee............ biz.yahoo.com biz.yahoo.com biz.yahoo.com

To: BZOOKA who wrote (11441)	5/27/1998 11:27:00 PM
From: mozek	Read Replies (1) \| Respond to of 13925

Maybe someone can help. Creative has a miniscule PE ratio, lots of cash, and they can't buy back their stock. Why would they buy Silicon Engineering with stock???? Usually a company pays with stock over cash when it thinks the stock is fairly or overvalued. If the company has a higher PE ratio, which wouldn't be hard, a stock purchase raises CREAF's PE ratio. A cash purchase does the opposite and effectively acts as a surrogate for a stock buyback of their own. This doesn't make sense to me. Does anyone have any insight? I don't have a position in CREAF. Had one last year, but I sold and haven't reentered yet. Thanks, Mike