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

To: Fred Fahmy who wrote (13427)	1/29/1999 9:26:00 AM
From: Alan Villalon	Respond to of 13925

Just out curiosity, if CREAF bought back there stock, I assume it would be retired. They would not hold it for appreciation purposes but for decreasing float and increasing EPS. Also, how many shares did they actually buy back? I read that they were supposed to acquire up to 9 million. I have been long this stock for over a year and wished I bought more when it was 9 so I could've broke even by now. Creative has a large market share and made some good acquisitions over the past couple of years. However, these acquisitions do not seem to aid in a substantial earnings growth. With the advent of USB ports, Creative's high end products are definitely going to get squeezed by the low end plug-ins. Sim has to start bullying some of the competition around. Creative has a good market share but seems to be slipping. They make good quality products but, in the end, cheaper (low margin products) will be sold in higher mass quantities that will hurt Creative. From one of the previous posts, we saw them rush out a $99 product so as to counter this trend and to offset disappointing high end sales. As a shareholder, I need to be reassured in the following areas: 1. What does Creative have in the pipeline (outside of a RIO player) to continue its growth? 2. What rate of return can Sim promise us as shareholders (Sitting on a flat stock is not my idea of a fun time)? - Sim has lost the confidence of many of us on this board and I need to hear a rallying speech. 3. I haven't seen too many adds for Creative products lately. Are we cutting down on marketing costs to help the bottom line? Just needed to vent. Thanks for any posts. -Al

To: Fred Fahmy who wrote (13427)	1/29/1999 10:39:00 AM
From: Dennis G.	Read Replies (1) \| Respond to of 13925

You're forgetting one important thing, SIM. Sim is the only real insider. He can't sell any without sending out a big sell signal to everyone else. Thus he can't make any money off the stock, even if it goes up. I believe that's why they have a dividend now. So Sim can get some money from his stock. I believe the BS about attracting income funds and what not is just that, BS. A smoke screen. The dividend was put there by Sim for Sim. It's had no significant effect on the stock price and will likely continue so. No one will buy this stock just to get a lousy 25 cent dividend every year. Not when it goes up and down (mostly down) that much on a daily basis. Dennis