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

To: Fred Fahmy who wrote (12680)	11/8/1998 7:26:00 PM
From: Brian Lempel	Read Replies (1) \| Respond to of 13925

Fred, the timing is extemely puzzling. With share buyback on the way, it seems silly to declare a dividend and (probably) cause the share price to go up... On the other side, you could argue that this will raise the share price even further before they begin buying back shares...allowing to set their "floor" price at a higher level. As far as investing in other companies, I agree completely. However, you have to figure that managing their stock price increases their ability to do this. And cash is hardly a problem... Brian

To: Fred Fahmy who wrote (12680)	11/8/1998 7:31:00 PM
From: Brian Lempel	Respond to of 13925

And you gotta like the spin they put on it: The recommended dividends take into consideration the company's present cash position, positive cash flow generated from operations and projected capital requirements for the current financial year, including the amounts expected to be utilized for its previously announced proposed share re-purchase plan. The Special Dividend recommended today reflects the company's particularly strong current cash position and projected cash flow. The Ordinary Dividend is intended to be ongoing and the company intends to continue to pay ordinary dividends in future periods subject to review of its cash position, cash flow, capital requirements and market conditions. Any projections on what a $1.00/year dividend will do for the share price? It would seem that it would be a big boost. However, when you think about it, a dividend is pretty much a zero sum gain for the buyer. Brian