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

To: Brian Lempel who wrote (13297)	1/12/1999 12:38:00 AM
From: Dennis G.	Read Replies (1) \| Respond to of 13925

Yeah but the real question is why should Sim care about top or bottom line growth or share value or anything else for that matter? He's not driven by wealth creation but by power. He's a control freak, like just about everyone else in Singapore. And the shareholders have unwittingly committed hari-kari by giving him the two tools he needs to cement absolute dictatorship over the company, the buy back and the dividend. And I was fooled too. Think about it. Over the next 10 years he will collect $130 million in tax-free income from the shareholders for doing nothing. Meantime he can continue to do nothing to enhance share value (which he is an expert at) and continue to buy back the stock piecemeal from fed up shareholders using shareholder money. And he can continue to reward obedient lapdogs with extra stock options, also courtesy of the shareholders. Why should he seek to change that situation? He can even buy back the company even faster using his dividend proceeds. And, of course, the cheaper it is, the more he can buy back. What does he care if it takes even 10 years to get there? Sad thing is there is virtually nothing that can stop him from doing this except a proxy fight or a hostile takeover, both of which would require someone with big bucks. Chance of either is very small. Who's going to want to take the risk? Anyway you look at it, all other shareholders are basically screwed. Dennis