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

To: jeffrey roberts who wrote (12996)	12/6/1998 8:20:00 PM
From: Beachbumm	Read Replies (1) \| Respond to of 13925

Looking at earnings for EMC, it is forecasted earn less than CREAF, yet is priced over 4 times higher. Extraordinary patience combined with continued good earnings will reap the stock price we all expect. Talk about apples and oranges! EMC's gross margin last quarter was in excess of 52% (almost CSCO league) while CREAF's was about 28%. EMC's net earnings rose 44% y/o/y while we all know what happened to CREAF's. CREAF will never be valued like an EMC because it is not in enterprise businesses. That said, there's plenty of reason to be invested in a lower margin but low cost business that is generating a lot of cash. Somehow that cash will be returned to the shareholders (unless it is squandered, and CREAF mgmt has not shown a propensity to squander). Beachbumm