View Full Version : Thoughts on Creative (CREAF)

08-21-2005, 02:50 AM
I bought this share at 9$ and now it's trading at 7.2$
It's trading below bookvalue, has over 3$/share in cash, had some setbacks this last year because of under-expectation sales of Zen music player, wich caused inventory buildup and depreciation of assets.

The company's management predicts that until Q4 ends they will regain profitability.

They also launched a new Soundblaster wich was very well accepted by the market (see tomshardware.com)

Also, although I dont have knowlege on technical analisys, I think this is a good time to buy some more shares while looking at the chart.

What do you guys think?

08-21-2005, 03:34 AM
You already bought some and lost 2 dollars on it....Why buy more????? To lose another 2 dollars.......It's a horrible company with bad earnings....if it goes up anytime soon you got lucky......they scheduled to make 11 cents this year and by 2007 make 2 cents....Not the way the earnings increases are supposed to go.......I'd get out and find better value in sndk netl or gnss in that sector...if you want to be in that sector....It's just a classic trying to catch a falling knife syndrome your in you buy now you may be seeing 5 dollars shortly. I"d get out...There are plenty of better stocks out there.

08-21-2005, 10:16 AM
CREAF... Creative Technology Ltd...

You are somewhat correct that technically the stock has broken out of its downtrending channel and is trying to base. It appears to have been bought up by some value investors in July, as the selling down to $6 may have been a bit overdone.

S&P has a 12 month price target of $9 on this stock.

Additionally, their '04 earnings were pumped up substatially by investment gains from holdings in other businesses.

Institutional ownership is low at 10%, and it is hard to see a catalyst to bring them into this stock.

They are trying to compete with Apple's Ipod in the MP3 player business and their margins there are lowering because of the competition.