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

To: Dennis G. who wrote (13298)	1/12/1999 6:05:00 AM
From: Fred Fahmy	Read Replies (2) \| Respond to of 13925

Perhaps I was too generous in giving Sim the benefit of the doubt regarding motives. Perhaps dmh36 and Dennis are correct and Sim does intentionally want a cheap price. Even I didn't want to be that cynical but what Dennis has suggested makes a lot of sense and does fit the facts nicely and would justify his behavior. For those of you who think this is far fetched.....let me provide you one example of a company which went down a very similar path...OAKT. The CEO of this company D. Tsang (clearly unethical IMO) drove down the company from the mid 20's to 3 over a period of a few years by gross mismanagement. Then, in one of the most unbelievable moves I have ever seen, he recently offered to buy the company for something like $4.5/share which is BELOW book value. Outrageous, yet true. Fortunately for the shareholders, his attempt failed. Sim is a control freak, no doubt about that. Perhaps he regrets the fact that CREAF is public and wishes to own the company 100%. In this case, Dennis' thesis would make a lot of sense. Reduce the number of shares outstanding (via buyback), create a lot of personal wealth via the dividend, then when he has accumulated enough cash and reduced the float enough, make a play for the remainder of the company?? Sure would explain a lot wouldn't it. FF