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

To: BZOOKA who wrote (12618)	10/30/1998 5:57:00 PM
From: Dennis G.	Read Replies (1) \| Respond to of 13925

Well assuming CREAF takes the aggressive approach and tries to buy that 9.3 million shares before their next AGM in December, what do you think will be their average price? I'm guessing that it will be about 16.5, because I think there will still be strong institutional selling pressure at that level and higher. That would be a total of about $150 million and I think CREAF would consider it a bargain. If they also earn another $60 million this quarter, that would still leave them with $340 million in the bank at the end of the year. With only 84 million shares out, that's still over 4 dollars per share in cash. Assuming they authorize the next 10% in December, they can then go into one of two modes to support the price. They can just not worry about the price and dollar cost average X amount every month until they hit the limit. Or they can have standing bids in to buy every time it dips below some level they determine is too low. I think that is the best way to go. That way the stock will become less of a trading instrument and more of an investment. Whadda ya think? Dennis