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

To: Brian Lempel who wrote (12106)	8/21/1998 6:11:00 PM
From: Dennis G.	Read Replies (1) \| Respond to of 13925

Book value is really a meaningless concept. Just a beancounter's number for liquidation purposes that doesn't include any allowance for people or intellectual property. CREAF has a higher per share book value than MSFT, for cripe's sake. Do you think any MSFT shareholders worry about book value? The sad fact is that, right now, the market values CREAF's entire future, including all its people, patents and products, at less that 7 bucks over cash. And that is with analysts STILL looking for the company to earn over 4 dollars in the next couple of years. How can these two supposedly contradictory conditions exist at the same time? What is wrong with this picture? It seems to me that it must mean that the market thinks they have no future and will be dead in a few years, no matter what they earn in the near future. This company has made no progress whatsoever during its existence in creating any feeling of legitimacy. They are, to coin a phrase, "psychologically bankrupt" in the eyes of the market. But I suppose they aren't unique in this. And a little top and bottom line improvement isn't going to change this perception. They will always be looked at as a "doomed" company. They should have taken their chance last year and sold the company when it had some value. They may have another reasonable chance coming up in the next few months. They ought to be looking for a buyer who has already created that "psychological" value, and sell to them for stock. CREAF's future earnings would have more "value" to just about any decent company than they do for them alone. Either that or Sim should take the company private again. Then he could continue to run it as his little toy empire without having the headache of shareholders. Dennis