Creative    Last:0.905   -

Creative's Q1 FY2007 Results

Wow, could be heading south faster than i thought! I wonder why Mr. Sim sold 2 million of his shares? Anyway, he sold at a good price considering today price!!

 

Creative will dive after the dividend dateline ...

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November 26, 2006

 

my guess is sub $10 in the next quarter. any takers?

 

 

Creative is stuck with its MP3 player range. It is pretty hard to go against iPod, Zune........ A lost making venture..... a drag on the bottom line for some quarters to go.
What new products are in the pipeline?
Interesting play on the wireless project it is embarking on, let's watch out for this implementation

 

Possible sharp price change may occur for Creative... be cautious. Direction of change may be southwards from TA charts.

 

What this relationship with the ex-co-founder can cook up ?



This is just my prediction, Mr. Chay is ===== Beyonics, (B),

Mr. Sim is ======================= Creative, (C),

(B) + (C) = B.C., (before Christ). Just kidding.

Maybe C is going to outsource all make for iPod products to B and start another range of iPod accessories products, or it is already in the pipeline and this is just for anouncement purpose ! All this is my guess, no assumption and no concrete evidence. Hope I will not got sue out of this. Good Luck.

 

BusinessTimes 23/11/2006

Creative CEO sells 2m shares to co-founder

CREATIVE Technology CEO Sim Wong Hoo has sold two million shares for $20.6 million to the company's co-founder Chay Kwong Soon, the company said yesterday. The shares, equivalent to a 2.4 per cent stake, were sold at an average price of $10.28.

 

Falling today... how come no more talk about Creative??

 

Low volumes on Creative... people are holding on till the XD. After that happens, I think that the price would fall quite a lot.

 

Should Creative become like Lenovo? The company that builds the notebooks for IBM last time?

Maybe Creative can become a contractor for IPod or Microsoft products instead of marketing their dying brand.

 

unless it can invent another killer product. spend good money for advertising, otherwise I think it will be difficult to break new high.

Remeber around $26 about one year ago? Now slightly more than 10 bucks.

 

The trading volumes on Creative are drying up.... a very sad thing to see in a once great Singapore company.

TA people should avoid this one.

 

KE has a trading buy rating with target price of $11.90, based on 1.4x PB.

 

DBSV has increased its target price to $10.30 from $9.40 after raising its earnings estimates for the consumer electronics firm.



"We have revised (year to June) 2007 forecast and expect a net profit of $54.5 mln compared to a loss of $19.7 mln previously," DBS said in a client note.



The brokerage is, however, keeping its "hold" call on the stock, citing lack of growth drivers seen in the horizon.



"Creative maintained guidance of returning to profitability by year-end but this could be due to one-time gains. Creative's sales have tumbled for the fifth consecutive quarter and broad-based declines in all product segments pointed to a tough operating environment," DBS said.



"We find it hard to be positive on Creative amid rising competition in the MP3 market," it added.

 

Creative will probably fall even more after its XD. People are just holding on for that.

 

Craig McHugh, President of Creative Labs, said the company would begin to pursue licensing agreements with companies that use the Zen patent in their products in the United States.



Creative also said it agreed to sell an 80.1% stake in a manufacturing operation in Malaysia for $40m in cash, which will result in a profit of $5m on completion of the deal in about three months.



Apple Computer Inc. agreed in August to make a one-time licence payment to Creative to settle all patent litigation over the iPod player. Creative said that due to a lower-than-expected tax rate, it now expects that licence payment to contribute an after-tax profit of $82m in the October-December quarter and an EPS boost of 98 cents, up from an August estimate of 85 cents.

 

SINGAPORE, Oct 31, 2006 /PRNewswire-FirstCall via COMTEX/ -- Creative Technology Ltd., a worldwide leader in digital entertainment products, today announced that an ordinary dividend of US$0.25 per share has been declared for the current fiscal year ending June 30, 2007. The dividend will be paid on December 1, 2006 to all shareholders of record as of November 15, 2006.

Holders of shares in the securities accounts with The Central Depository (Pte) Limited ("CDP"), Singapore, will receive payment of dividends through CDP in Singapore dollars converted from U.S. dollars at the rate prevailing on November 27, 2006. All other shareholders will receive payment in U.S. dollars.

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The volume today is relatively higher than the previous 2 weeks'. This is an indication of selling pressure.

 

Creative down 10.18% in Nasdaq's After-Hours trading now .... but very low volume involved.