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

To: Gambit who wrote (13249)	1/7/1999 3:05:00 AM
From: burn2learn	Respond to of 13925

Gambit, You must admit that Creaf has done very well in respect to its industry competitors. I feel the company has done very well in this enviornment, althought the stock has not. The company continued to make profits in a difficult period. I will give you that it did not grow, but look at the difficulties it had to overcome! Creaf will grow this year! I think we will see more consolidation in this segment and hopfully Creaf will profit from this. I believe the upcoming consolidation will be the key for Creaf. I feel Creaf will be a good investment for me. Up till now due to expenses I havnt been able to capitalize on Creafs misfortunes, this has changed. I now have the cash to lower my basis and profit from Creaf. Dimd in the last c.c. said rio would generate 10 million in revs(and was soldout), also said that they expected 15 mil in the next qtr. Creaf did not miss the boat on this. dimd absorbed all the legal cost of this product and if Creaf jumps in latter without this expediture...great. I dont understand why Creaf sees such a narrow focus on pc audio. they develop cards and api's thats it. I feel that they should provide a total package. ALthough it probably would not provide additional revs it would solidify Creaf as a dominate standard in PC audio. I read recently where in intel was developing some kinda new software to enhance gaming audio. In my mind these are the features Creaf sould be a leader in ...not just cards, but total pc audio experiences. From internet streaming to games to internet telephony. Its not the current standards that lead the way to the future its the upcoming functions that will drive Creaf. A vision in audio is needed not cards. Creaf no doubt did well this qtr ..congtrats to all that held. I really learned the value of patience this last year with Creaf, sometimes it surprises me the number of those who didnt. mike

To: Gambit who wrote (13249)	1/7/1999 6:39:00 AM
From: Gopher Broke	Respond to of 13925

Sure technology changes. So do companies. The points I would make are that - As a percentage of total revenue Creaf's sound card revenue was 55% in 97 and 45% in 98, while total revenue was increased (excluding OTCs for buying companies). While sound cards are still important I do not regard Creaf as being solely a sound card company any more. IMO they are managing their diversification pretty painlessly. - Creaf's commitment to driving DVD through shows real vision and they have not seen the payback there yet. - The MP3 player market is still immature. Maybe if Creaf were launching their first product in a couple of years you could talk about "missing the boat". As it is, they have no need to take the risks of being first to market. They look to me to be ideally placed for DIMD to seed the market, get the product known by the general public and then for Creaf to launch a higher spec system at a lower price and clean up. Maybe. - Creaf has the spare cash to buy into new technologies should they be too late in spotting the opportunity to do their own R&D. All this upside potential plus a 3% dividend in a months time. I am keeping them as one of my core long positions for the time being.