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

To: Fred Fahmy who wrote (11568)	6/9/1998 11:17:00 AM
From: Doug Fowler	Read Replies (1) \| Respond to of 13925

Fred, I have always thought that Wall Street "looks out", in a 6 to 12 month time-frame, when pricing a stock. Now, either they are not doing this with Creative, or they ARE doing it. If they are doing it, then they are already saying they don't believe the forecasts. I don't believe the forecasts, primarily because Creative has failed to show REVENUE growth for quite some time, even with all their acquisitions. The hardest thing to do is grow revenues, and Creative has not passed this test. The reasons I have remained in this stock (besides the fact that I must be an idiot), is that their earnings have been solid and the PE is incredibly low, combined with the hope that they have a decent chance of growing revenues of perhaps 5 percent, combined with the fact that I didn't see any way that with an already low PE they would fall much further. But I absolutely do not buy 20-25 percent revenue growth given their anemic growth over the past 18 months.