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

To: HEXonX who wrote (11530)	6/5/1998 1:06:00 PM
From: grogger	Read Replies (2) \| Respond to of 13925

Can anybody explain to me why the market rallies bigtime and CREAF does nothing. Is this company permanetly stuck at these low levels? What is it that traders don;t like here? Rob

To: HEXonX who wrote (11530)	6/6/1998 11:10:00 AM
From: Dennis G.	Read Replies (1) \| Respond to of 13925

I believe CREAF should find a buyer for itself. This company will never be given a fair market multiple if it stays independent. I think they would be valued more as a strong multimedia division of a large, multinational like Phillips. They would be as ideal a fit as there is and are looking for the opportunities. biz.yahoo.com I think CREAF shareholders would do better long term getting 23 (or even 20) dollars of Phillips stock than 17 dollars worth of CREAF. Barring a massive buy back, I don't think this company will ever see 30, let alone 40. US institutions just will not hold it at that level. Too many uncertainties cloud its future. It will continue to get trashed on every run up. But as part of a large company with a broad range of products, there is much less concern about the inevitable hiccups in the multimedia sector and CREAF's piece of it. Why did a company like SEI want to get bought out and take stock for the deal? Because they would never have been able to realize the value they saw in themselves by staying independent. Being a part of a bigger company like CREAF and having stock in it gives them the chance to see that value eventually. Same with Ensoniq, Cambridge, etc. Well, CREAF itself is in the same position I think. The longer the stock price stays in the crapper, the more likely it is that they will get an unfriendly offer. Why not instead look for a friendly deal? Right now, CREAF doesn't seem to have anything to say about its ludicrous valuation. I wonder what they would have to say if they got an unfriendly offer for 24 bucks and the majority of shareholders went for it? Sim probably would complain then but I don't think he would be able to stop it. He doesn't control enough shares anymore and they can't buy back stock. The record of this stock is clear. This has been far and away the most consistently successful period they have enjoyed. Yet what has been the reward? Virtually nothing. The market now values Sim's vision of the future at 13 dollars above cash. Even the other original founders don't see any significant potential here and are dumping it. Those are pretty damning condemnations. I really think it does not matter what business decisions CREAF makes and how well they execute them. On its own, the market will always fear its imminent termination and disrespect them and discount their value severely. To alter this situation would require a complete and fundamental change in its perception. History says its not going to happen. I would be happy to be proved wrong, but at this point I doubt it. The market has hit Sim (and me) with a 2X4 across the forehead. I finally recognize it and feel like a complete idiot for not seeing it sooner. I wonder when Sim will recognize it. The market wants this company bought out. Some entities are just not meant to be independent. This company needs the protection of a big umbrella with international stature and a sense of permanence. Dennis