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Creative, will it go up?
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flyersummer
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28-Jan-2011 23:38
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January 28, 2011
CREATIVE TECH ($4.03, up 1) One can’t help noticing how rapidly the company’s cash is dwindling in the last 2 and half years, from a high of US$408.64 mln as at Jun08 (thanks to a settlement with Apple) to only US$189.7 mln as at end Dec’10. At the rate it is being depleted, cash will run out in no time. Thankfully, Creative has no debt. Equally worrying is the depressing revenue of only US$69.29 mln in the last Christmas quarter. That compares with say US$390 mln in the Dec’05 quarter! Looks like the only “support” to Creative’s share price is the book NAV of US$4 / S$5.12 at end Dec’10, which is however also a declining figure, vs US$4.16 six months ago. Creative continues to destroy shareholder value with 2Q ended Dec’10 bottom-line loss widening from US$5.3mln a year ago to US$10.85mln in the current quarter, dragging its 6 months to Dec’10 loss to US$14.47mln versus a loss US$6.3mln last year. As a result of the loss and worsening working capital requirements, operating cash flow was negative US$28mln versus negative US$7.4mln last year. After capex and dividend payments, cash holdings reduced from US$214mln to US$190mln. Shareholders funds continue to be eroded from US$318mln a year ago and US$290mln a quarter ago to US$278mln in the current quarter. Management warned that continued investments in R&D, sales and marketing expenses for new products, operating expenses are expected to continue to balloon going forward. Coupled with weak demand for their products, they will continue to remain loss making going forward, further eroding shareholders funds. No wonder that Co-Founder and Director Mr Ng Kai Wa has been off-loading shares in the market having sold 10,000 shares at $4.04 on 7 Jan’11 and 15,850 shares at $4.36 in Nov’10, reducing his stake to 2,303,555 or 3.31% of the company. We maintain our SELL recommendation. |
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bsiong
Supreme |
29-Jul-2006 18:59
Yells: "The Greatest Wealth is Health" |
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http://stockcharts.com/h-sc/ui?s=creaf come on in and play with this chart + chart tools... |
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billywows
Elite |
28-Jul-2006 23:07
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Microsoft to launch 'iPod killer'
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Nostradamus
Supreme |
28-Jul-2006 20:26
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Creative may be a good buy near its trough of $7.40. |
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passo695
Member |
28-Jul-2006 19:35
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what should be a good price to enter this stock? |
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Nostradamus
Supreme |
28-Jul-2006 10:55
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Live data in Nasdaq. |
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bsiong
Supreme |
25-Jul-2006 13:42
Yells: "The Greatest Wealth is Health" |
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In Nasdqa > |
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Nostradamus
Supreme |
17-May-2006 11:01
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Those who bought within my range would have made at least $1 gain. |
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Nostradamus
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17-May-2006 10:59
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As expected, it fell to my range of $8.50 - $9. $8.90 to be precise. Rebounding after it filed a patent-infringement suit against Apple Computers. Remains to be seen if it will win. |
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Nostradamus
Supreme |
05-May-2006 01:02
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I think it has a bit more to fall. Maybe $8.50 - $9. |
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tanglinboy
Elite |
04-May-2006 18:59
Yells: "hello!" |
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Wow... creative fell to a low of 9.2 today. Good time to go in when its weak? |
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Nostradamus
Supreme |
04-May-2006 00:07
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Net loss of $114m is the highest on record. Results were much worse than expected. It recorded a gross loss of $10m, its 1st gross loss on record, on the back of poor sales, lower margins and inventory writeoffs due to sudden and severe drop in flash memory prices especially towards the end of the quarter. Shareholder funds fell to $420m which translates to a book value of $8.10. |
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Nostradamus
Supreme |
04-May-2006 00:00
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Net loss of $114m is the highest on record. Results were much worse than expected. It recorded a gross loss of $10m, its 1st gross loss on record, on the back of poor sales, lower margins and inventory writeoffs due to lower flash memory prices. It has a book value of $8.10. |
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Nostradamus
Supreme |
03-May-2006 14:57
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As expected, fell below $10. It reported losses for last quarter. |
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Nostradamus
Supreme |
02-May-2006 11:42
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Creative covered the gap at $10.50. The stochastic chart doesn't look promising. On its way down again. May even break recent low of $10.00. |
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singaporegal
Supreme |
27-Apr-2006 21:48
Yells: "Female TA nut" |
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I haven't been monitoring Creative for some time... was quite shocked when I saw just saw the historical chart. It touched $10.0 a few days ago! A low for this year. However, I think Creative might go up a little in the very short term (couple of weeks). The RSI chart is showing some promise. |
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prettylisa
Member |
11-Apr-2006 08:14
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I have a zen player and I think its very good and cheaper than the ipod. but aesthetically speaking, i think the ipod definitely has the advantage of better looks and savvy marketing. creative lost out to apple not because their product is no good but because they did not do as good a job in marketing it. |
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ravi00
Member |
10-Apr-2006 21:48
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Thanks NostraD for the advice, looks like it's a tough fight for Creative. |
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Nostradamus
Supreme |
08-Apr-2006 13:25
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You should cut loss early. Say, if the price falls 8-10%. Don't wait until it's too late. Buy back when it falls substantially. Maybe around $9. |
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Nostradamus
Supreme |
08-Apr-2006 13:16
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Hi ravi00, Kim Eng has a target of $8.45 for this stock. My personal opinion is to sell and that it'll fall to $9 - $10. With the almost $100 mln loss expected for the Mar quarter, its historical book value of $10 per share would likely decline to about $8.30. Looking at Creative's previous loss making years, the stock declined to about 0.9x its historical book value. It doesn't have the financial muscle to compete against Apple and other big boys. |
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