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

To: Curbstone who wrote (12687)	11/8/1998 10:09:00 PM
From: Fred Fahmy	Read Replies (3) \| Respond to of 13925

Mike, < I look at it, that big pile of cash is MY money.> Actually, the pile is all of our money and in this case the shareholders as a group (via a vote) will decide what to do with the money. Obviously, with Sim's support we know how that vote is going to go. I would much rather see the company invest the money in growing the business. <They are saying, in essence, "You, the owner of this company, know better what to do with your own money than we, your hired managers do."> Damn, what kind of a message is that to send?? When I invest in a company it is because I believe that the management and workers can grow the value of my investment, i.e. increase the value of the company. I bought CREAF as a growth stock not as an income generating investment. To me what they are saying is "hey, we tried but we don't know how to grow this business significantly. We are a value income generating stock and will never be a growth stock. Therefore, we will just plan on growing the business 5-10% each year and payout any earnings in dividends". <This is an extremely positive announcement.> I guess beauty truly is in the eye of the beholder or in this case the stock-holder. With so many bargains in the industry, I think they could have spent the money consolidating and planning for the future. <As a side note you can use your dividend however you want, if you disapprove, use it to buy stock in Aureal, if you approve, use it to reinvest in Creative.> True, but again I am invested in CREAF because I think there is potential for significant growth (i.e. capital appreciate). Trading potential growth (e.g. not as much cash for R&D or acquisitions) for periodic income payouts has many implications including tax implications (at least in the US). You're right I could take my dividend and invest it back into CREAF but keep in mind I will have to pay taxes on this amount. As a long time investor and supporter of CREAF I don't like this one bit. I see it as a short term gimmick. Oh well, let's see how this plays out. FF

To: Curbstone who wrote (12687)	11/8/1998 11:25:00 PM
From: Jeff Lins	Read Replies (3) \| Respond to of 13925

Aloha, Aloha, The problem is you are right :) Management is saying that they can't find a better way to spend the money. Using your analogy, we have hired them as managers of our money, to make us a nice return on that money. Now they are saying.."sorry. Can't think of anything to do with it". Remember, this is not a return of your investment; it is a return ON your investment. That is, it is TAXABLE. For the record, I would have rather seen them buy another 6-7% of TDFX... :) Or whatever the max the rights plan will allow. So, after tax we get a few hundred dollars...I'd rather they spend $50 million on something fun :) Heck, they coulda bought STBI