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

To: burn2learn who wrote (12984)	12/3/1998 2:11:00 PM
From: Curbstone	Respond to of 13925

Ahhh...the sweet voice of reason. I'm with you Mikey. Aloha, Mike

To: burn2learn who wrote (12984)	12/3/1998 2:41:00 PM
From: Fred Fahmy	Read Replies (2) \| Respond to of 13925

mike, <Creaf must do what is right for creative...> Which of course is us. I think what is right for the company is too buy as many shares for as cheaply as possible. I also believe that this is meant to be an ongoing process including through all of next year. I also think/hope that $17-20 will be lower than the average price they will pay for shares next year. This is much closer to a bottom than the top if the fundamentals remain intact. I say buy "low", now, especially when it looks like you have more money than you can spend before year's end. Waiting in anticipation for even lower prices is not in the my term long interest, especially if the stock starts going up. I want shares retired. Every time a share gets retired, I own a little more of this company. If we were talking about buying more shares at 25 then I might agree. But at 17 I think they should be buying all they can. <If creative drove the price up during the month higher than the perceived market value, the stock would likely fall back down.> This is a very key point and I'm glad you mentioned it. The "perceived market value" may very well change for the better if investors saw CREAF begin to rally towards more reasonable valuation. I never advocated buying shares just to artificially drive up the price to some unreasonable value. I think if the stocks starts going up investors, other than CREAF, will be interested. <Creative imo wants the stock to price itself, maybe the qtr is a blowout, why would creative buy shares if they think the stock will go up?> I'm not sure if you are being serious but I will assume you are. The idea is to "buy low". Most investors (and CREAF is no different) want to buy stocks because "they think the stock will go up". If you think the stock is going up because of a blowout quarter, you would buy all you could get now. Why would they want to buy after the price is higher. This is my opinion in a nutshell: if the year ends and CREAF is below $20 and CREAF did not spend all of their 1998 authority, I will consider this irresponsible and not in the best long term interest of the shareholders, at least this one. In 1999 they can use their authority more casually and defensively, but the stock remains undervalued enough to warrant spending all of 1998's authority if they can at a reasonable valuation. My 2 cents, FF

To: burn2learn who wrote (12984)	12/3/1998 4:48:00 PM
From: Dennis G.	Read Replies (1) \| Respond to of 13925

But what are they saving the cash for? They don't want to buy any more companies with cash. Ask them yourself. It's a bookkeeping and tax nightmare. They want to use stock. But no one will take the stock at this level. And by not supporting a higher price they are really telling the SEI guys that they were fools for taking 22 bucks as fair value for their stock. CREAF is now part of the market for this stock for the first time ever. To use an overused expression, it is different this time. Whether they like it or not, every day from now on, they are making a statement in the market about what the value of this company should be. They are really controlling the value now. I don't see how any shareholder can be happy that they are saying it's only worth 17 bucks. But if CREAF decided it was worth more and bought more and the price went up, that would not be "artificial". They are part of the market now too. And every share they buy is one less share to come back and haunt them. That is the key. What is really the worry people have is that other owners of this stock will dump it at a higher level. Well so what? Those people have to sell eventually for the stock to rise past that level. CREAF has to get this stock in the hands of people who want it and are willing to hold for a higher level. What better way than to show the world that they believe it is worth more and are willing to put their money where their mouth is. New owners looking for more appreciation will replace the old owners. This is a rapidly disappearing opportunity. All I am asking is that they make a onetime significant effort to attain some reasonable value, even if some others will sell at that level. This is like a game when you are behind at the half. In basketball you go into a full court press or in football it's the 2 minute drill. An effort to get things back to even so you can move ahead from there next year. Dennis