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

To: burn2learn who wrote (12452)	10/16/1998 2:33:00 AM
From: Savoirman	Read Replies (1) \| Respond to of 13925

Some tidbits from Creative's circular to shareholders: 1. Maximum price - 20% above highest price for a board lot on SES or 20% above highest price on Nasdaq, on the trading day immediately preceding the date of market purchase. 2. Rationale for buyback - The company's need to repurchase its own shares reflects in part the practices of its competitors and in part the dominance of the US capital markets for the Company. Many international companies, including those of the US, UK and Hong Kong are permitted by their governing jurisdictions to buy back their own shares. Share repurchases are thus widely available to and utilised by many other high tech companies with which the Company competes for talent, merger partners, capital, and investor and analyst interest. (NOTE people, INVESTOR AND ANALYST INTEREST!!!!) Share repurchase programmes are important because high technology shares can be volatile, as the Company's own shares have proven. A share repurchase prograrmme tends to buffer short term share price volatility an, provide additional liquidity to the market and offset the effects of short-term speculators and investors. (HERE CREATIVE SHOWS IT IS CONCERNED ABOUT US PEOPLE, THE LOOOOOONGS). Minimising unnecessary volatility bolsters shareholder confidence and employee morlae. The latter can be a critical factor in employee retention, especially in the US Silicon Valley, where the Company has significant operations. Minimizing extreme volatility also facilitates use of company stock for stocks-for-stock acquisitions of other companies. this enables the Company to acquire ongoing technological improvements with minimal cash outlay. (THIS HINTS AT MORE ACQUISITIONS ON THE WAY!!!!!)