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

To: Jon Tara who wrote (13015)	12/5/1998 10:16:00 PM
From: Dennis G.	Read Replies (2) \| Respond to of 13925

Yes they might be somewhat in a no win situation. And I would agree that a different strategy is needed next year when they only have 10% for the whole year. Buying the dips is probably the way to go to reduce the volatility. But I still think this first chance is a fleeting golden opportunity to make a statement about their faith in themselves and their relative value. I think this is more important than total costs or a little more near-term volatility. This is the best PR opportunity they have ever had. I doubt that they have even hit 3 million so far. Let us say that they decided to grab another 5 million by Dec 18 when the quiet period starts. I believe that that might cost them an average of about 20 a share. Then those 5 million, of course, can not be sold ever again. But those same 5 million might very well be sold for less than 17 during the quiet period or any other time. Compare that to the case where they just nibble at it now and next year and get those same 5 million for 17. What is the net cost difference? Only a lousy $15 million bucks. And even if it cost them 22 bucks, that is only $25 million extra. If they believe that $15-25 million more in the bank is crucial to their future, than that is a horrible message to send. I believe what we are seeing is a manifestation of their cultural obsession with penny-pinching and fear of the future. They need to lighten up on that motif. There is a time for caution and a time for assertion. I think now is the time for assertion. If they felt their earnings were going to be good, why shouldn't they be buying all they could? But just nibbling at it seems to me to be saying something else. I hope I am wrong about that. Dennis