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

To: Dennis G. who wrote (13524)	2/6/1999 1:19:00 AM
From: Dennis G.	Respond to of 13925

Creaf (Part 1): FWIW, here is another simple statistical comparison of CREAF vs. the multimedia industry. I gleaned the following data from the latest sheets on Yahoo. As a kicker, I threw in Mickey D's (MCD). Shown are the latest stock price, number of shares in millions, number of employees and cash per share. Stock P($) S(M) Emp. Cash/S creaf 12.00 92.9 4000 4.49 dimd 7.63 35.1 864 2.21 tdfx 11.75 15.6 123 6.08 nvda 19.80 28.6 184 0.88 tdddf 4.88 15.3 91 1.48 siii 7.63 51.2 654 2.51 intc 127.50 1670.0 63700 5.05 esst 6.50 41.2 447 0.76 cube 21.50 37.5 750 4.76 aurl 0.51 45.0 81 0.01 oakt 3.00 40.7 511 2.59 nine 2.75 9.4 97 0.07 opti 4.50 10.8 133 5.46 crus 7.88 63.9 1857 5.25 mcd 80.50 676.6 267000 0.45 Here is that list of stocks sort according to total value, including cash, per employee (in thousands). I have also included the weighted average of all of the multimedia industry except INTC. Stock V+/Emp (K) intc 3343 nvda 3078 tdfx 1490 cube 1075 tdddf 820 esst 599 siii 597 w-ave 449 opti 365 dimd 310 aurl 283 creaf 279 crus 271 nine 266 oakt 239 mcd 204 At the top of course is the behemoth INTC, because of it's near monopoly in the multiprocessor business. There are 3 others at over a million per employee. NVDA is obviously distorted by it's recent IPO. (Probably a great short.) CREAF ranks just below AURL, and only 37% above McDonald's at the bottom. If CREAF had the average of the industry, it would be 60% higher at $19.30. But I believe the cash position of some of these companies distorts the true relative value. Here is the same list sorted according to value per employee exclusive of cash. Stock V-/Emp (K) intc 3210 nvda 2941 cube 837 tdfx 719 tdddf 571 esst 529 siii 400 w-ave 298 aurl 278 nine 259 dimd 220 mcd 203 creaf 174 crus 90 oakt 33 opti -78 Continued Part 2 Dennis

To: Dennis G. who wrote (13524)	2/6/1999 1:19:00 AM
From: Dennis G.	Read Replies (1) \| Respond to of 13925

Creaf (Part 2): The true level of damage to CREAF now becomes apparent. CREAF ranks only above the three total loser companies of CRUS, OAKT and OPTI, each of which has trashed itself either by complete and utter incompetence and inability to compete, or by willful negligence. OPTI even has a negative worth without cash. Is this what CREAF management aspires to? To be associated with these companies? Is this where they are headed? CREAF ranks even more noticeably below both AURL and DIMD and well below the average. If they were just at the average, they would be worth $20 1/2. I do not believe for one minute that CREAF employees are worth any less or are any less productive than those of DIMD, or AURL, or TDFX, or CUBE, etc. Does Mr. Sim? But the most damning comparison of all is that CREAF employees are valued 14% BELOW McDonald's, a stinking hamburger joint. DOES MR. SIM ACTUALLY BELIEVE HIS PEOPLE ARE WORTH LESS THAN A BUNCH OF HAMBURGER FLIPPERS? DOES THE MARKET? I know one thing. If I were an employee of CREAF, I would be LIVID that CREAF management had devalued my efforts to the point of being worth less than a hamburger jockey. And if I were a member of management, I would be both appalled and ashamed that I was a part of this condition. I don't care if anyone calls me a whiner, the situation is both INCOMPREHENSIBLE and INTOLERABLE! The company's business condition doesn't justify anywhere near this level of butchery. I truly do not understand the apathy of both employees and shareholders over this situation. I do not understand why there isn't both an employee and shareholder revolt going on right now. Is Mr. Sim God? Is he an Asian untouchable? Why does he deserve to be running this company? I wish someone would put these numbers right in front of his face. I bet he has no clue as to how his people are valued right now. I bet he would just think it was more negative Yankee propaganda. I bet he still doesn't admit he is any part of the problem and that it's all outside factors that he can't control. For what it's worth and for all to see. Dennis