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

To: Gambit who wrote (11586)	6/11/1998 6:32:00 AM
From: Scott Moore	Read Replies (2) \| Respond to of 13925

Surely CREAF's price will recover somewhat, but what product out there do they have that will sustain the 5% growth rate. You've got face it that Aureal has the better chip, and SBL is going to turn people off when they find out they have to have 4 speakers. CREAF's Voodoo II is a success in a small niche and how can they figure that SBL will be anything more than a small niche product also? IMO, if it weren't for the lack of DOS game support, the S3 sonic vibes would have taken a bigger chunk away from CREAF already in the lower end. At some point, DOS games will be a thing of the past and will CREAF's profit margin be sustainable when competing in the PCI market? Maybe CREAF will win the lawsuit against AURL and absorb that product line. Otherwise, what is the plan to keep their margins from shrinking and sustaining positive growth? ATI is looking too strong in the video category, if you doubt that look at recent STBI price action. Having huge cash reserves may look nice, but buying shares back won't increase gross sales.