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

To: lcminc who wrote (13196)	12/26/1998 12:55:00 AM
From: Brian Lempel	Respond to of 13925

*OT* Logan, after losing my shirt in disk drive components, I am very wary of investing in such companies. Buying at the depressed levels of a couple months ago would have been great, but the risk is pretty high at this point. First of all, the companies you mention are mostly only marginally profitable. Then you have huge risks of overproduction, being leapfrogged, etc. It seems to me that it is much safer to go with either a distributor (CELL or CLST) or a phone manufacturer. CELL has fantastic management (Take some notes CREAF!), a more mature global footprint, and higher margins. CLST has poor management, but stands to recover as MOT's handset division improves in '99 on the back of CDMA StarTac. Meanwhile, it is uncertain how long the factors that caused them to have a bad quarter will continue to be a burden. There are many rumors regarding their Topp investment. Both companies look good for the long term. My money is in Brightpoint (originally as an iridium play) because of better management, focus, and diversity. And I of course am a big fan of QCOM on the handset manufacturers side. That story just keeps getting more and more interesting. By the way, why don't we take this discussion over to the CELL thread... Brian