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

To: taxikid who wrote (11654)	6/13/1998 10:50:00 AM
From: john p. carney	Read Replies (2) \| Respond to of 13925

Man, I go away for a few months and CREAF is cut in half. Can you bring me up to speed taxi? Technically looks like a ST bottom. I might play it for a point or two next week. Too bad I haven't been watching. I would have jumped all over it at 12. I can't believe this is the same stock I sold for 27 and change last fall. John

To: taxikid who wrote (11654)	6/14/1998 5:31:00 PM
From: Brian Lempel	Read Replies (1) \| Respond to of 13925

Hey everyone. I just got home, and am sitting here with a Merrill Lynch report in my hand Int. rating lowered from buy to accumulate. '98 eps lowered from 1.75 to 1.47. FY '99 lowered (WOW!) from 2.73 to 2.26. * recent developments in Asia make us concerned that guidance for '99 could continue to be lowered as the year progresses. * (summarized) believe that Asia will make us disappoint into the future ad keep p/e low in spite of earnings. '99 guidance will not be met. * new eps estimate of $0.10 ------------------------------------- Comments: this report certainly shows how negative the sentiment is now. Given this report, valuation may be justified. However, IMHO, this is a very bearish scenario. Estimates for next year have been trimmed by almost 20%. It is hard to see how revenue will continue to languish. SB Live will jump start the audio market. Continued ramp in speakers, as well as OEM contracts involving speakers, will add revenue and predictability of revenue. Also, just received an e-mail from CREAF regarding the out of stock situation for DVD-RAM. They say this was due to unexpected customer demand. This brings me to my point that DVD ROM/RAM will provide an unexpected lift next year. For now, I am not planning to add to my position. I did enough of that at $20. But what was good at $20 is good at $13 for the same reasons--excellent balance sheet, vision, and emerging opportunites. However, I will use some cash I have to buy more CELL, as this will have more opportunity in the coming month. However, you can be sure that I will be here to back up the truck before July 1. I will not miss out on the SBLive announcement! Good luck, Brian