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where is the power of this counter? climb fast begin of this week and now slow down liao...in fact heading back south..
$60??? another 10 baggers like OSIM cheers.....
Yes, hope so. Such companies can be very profitable if they can compete well based on their newer and better products. If failing so, then losses are common since their costs to maintain business is already huge. So, Creative's shares can both potentially go back to it's supernormal high at $60 or the company can also potentially be reduced to the slumps.
So far, the only technology company in the world that is still consistently doing well is Microsoft. This unique technology company can do so because it has already managed to monopolise the international markets with their line of products such as operating softwares (XP, Windows Vista), Microsoft Office, Windows Internet Explorer etc. Monopoly to such strong extent ensures consistent profitability since users worldwide have to use their products in homes, schools, government agencies and businesses. The only lesser competition for Microsoft is Apple Computers with their Macintosh operating software. However, I think Microsoft will still continue to be profitable for a long time into the future as long as they do not "cock up" their quality of the future line of products rolled out.
This is an expectional case of a technology company that can manage ot maintain it's profitability since it has gained strong consumer monopoly for it's technology products and this monopoly is not easily overthrown because of their already established strong branding (e.g. computer users worldwide will have heard of Microsoft even if some may not be using their products).
I hope it will go all the way up to $60!Just like when it
launched the mp3 products a few years ago.
Technology companies generally may not provide consistent growth in earnings. Their profitability depends very heavily on the sales and marketability of their products. It is very competitive in this industry with many players rolling out new products to compete in the market. Companies like these thrive on research and development to innovate and come out with better and newer products frequently to compete with their competition. They also need to spend on advertising, marketing and educating users on their new products when released. So, companies like these have to spend huge costs in R&D and marketing. Not to forget they have to price their new products competitively to their competition since their competition may come up with similar new products to rival for market share of customers.
So, huge costs that needs to be spent constantly to maintain the business, no matter whether there is sales or not. If the sales of their products is not doing well or if there is no more newer products rolled out to compete with competition, the company may go out of business soon. However, if there is newer products that is better than the competition, it can be very profitable for the company since customers will go for the technology products that are better and newer.
In conclusion, inherent recurring huge costs of operations coupled with fluctuating earnings depending on innovation and competition of products sales makes such companies very difficult to ensure a constant stream of earnings. It is therefore not surprising that Creative's shares once soared to sky (on sky high optimisim for their high earnings few years back) and now has already dropped significantly (since the business is making losses now).
knightrider ( Date: 07-Aug-2008 10:34) Posted:
That is not truth ! In past years, market rumours that Samsung is always eyeing this brand, just that the founder did not want to let go ! This will definetly not become a penny stock ! It took Mr. Sim more than 20 years to build this brand. I still have faith in this counter just not the right time to get in yet. Read the reports from BT, 7 Aug 2008 !
Creative posts US$31.7m Q4 net loss
By
ONG BOON KIAT
(SINGAPORE)
An US$11.7 million restructuring charge has dragged Creative Technology
to its biggest loss in nine quarters, as revenue fell 15.6 per cent
from a year earlier.
The homegrown tech giant posted a net loss of US$31.7 million for the
fourth quarter ended June 30, compared with a loss of US$19.3 million
for Q4 last year. On a per share basis, the net loss came to 40 US
cents, compared with a net loss of 23 US cents previously.
For the full year, the net loss totalled US$19.7 million. This
compares with a net income of US$28.2 million last year - but that
result was helped by US$100 million paid by Apple for its use of
Creative's ZEN patent in its products.
For the latest Q4, Creative's sales slumped 15.6 per cent to
US$139.5 million, from US$165.2 million a year earlier. Full-year
revenue came to US$736.8 million, 19.5 per cent less than US$914.9
million previously.
Looking ahead, Creative said yesterday that operating expenses have
been 'significantly reduced' through restructuring efforts in Q4.
The company is aiming for a 10-15 per cent reduction in operating
expenses in the current Q1 compared with the preceding Q4's US$61
million, said Creative Labs president and chief operating officer Craig
McHugh.
Q1 revenue is expected to be between US$130 and US$140 million, he said. Revenue for Q1 last year came to US$184.6 million.
Mr McHugh said adverse 'macro-economic conditions' will continue through the company's coming Q2.
Due to this, and the possibility that Creative may be
'de-emphasising' some of its 'underperforming businesses', revenue this
quarter is expected to be lower than that last year, Mr McHugh said.
In Q4, Creative sold US$69.8 million of personal digital
entertainment products, equivalent to 50 per cent of its total Q4
revenue. In the year-ago period, revenue from this category was US$94.2
million, or 57 per cent of total sales.
Europe accounted for 40 per cent of overall Q4 revenue. Then came
the Americas, with 34 per cent. Asia and the rest of the world made up
the remaining 26 per cent of sales.
Creative completed the sale and leaseback of its headquarters
building in Jurong for $246.8 million in Q4. It has leased back the
building for five years, with an option for additional lease periods of
three and two years.
The sale gave Creative a gain of US$147.9 million. This amount will
be treated as a deferred gain, to be amortised and recognised in the
company's income statements over the lease term of five years.
Creative also made a US$100 million loan repayment after the close
of Q4, and this will be reflected in its balance sheet for the current
Q1.
Creative's share price closed unchanged at $5.80 yesterday.
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Wow... still cheonging ... 7.24 now... up 1.34 !
Wow... still cheonging ... 7.24 now... up 1.34 !
How come kep flying????????? There something brewing??????
Creative SOARED 31% in NY last night...
Sad company. Respect the founder and owner for his intelligence. But unfortunately he is on the "wrong side of the fence", if you know what i mean. Good guys die young. Cannot make it already.
That is not truth ! In past years, market rumours that Samsung is always eyeing this brand, just that the founder did not want to let go ! This will definetly not become a penny stock ! It took Mr. Sim more than 20 years to build this brand. I still have faith in this counter just not the right time to get in yet. Read the reports from BT, 7 Aug 2008 !
Creative posts US$31.7m Q4 net loss
By
ONG BOON KIAT
(SINGAPORE)
An US$11.7 million restructuring charge has dragged Creative Technology
to its biggest loss in nine quarters, as revenue fell 15.6 per cent
from a year earlier.
The homegrown tech giant posted a net loss of US$31.7 million for the
fourth quarter ended June 30, compared with a loss of US$19.3 million
for Q4 last year. On a per share basis, the net loss came to 40 US
cents, compared with a net loss of 23 US cents previously.
For the full year, the net loss totalled US$19.7 million. This
compares with a net income of US$28.2 million last year - but that
result was helped by US$100 million paid by Apple for its use of
Creative's ZEN patent in its products.
For the latest Q4, Creative's sales slumped 15.6 per cent to
US$139.5 million, from US$165.2 million a year earlier. Full-year
revenue came to US$736.8 million, 19.5 per cent less than US$914.9
million previously.
Looking ahead, Creative said yesterday that operating expenses have
been 'significantly reduced' through restructuring efforts in Q4.
The company is aiming for a 10-15 per cent reduction in operating
expenses in the current Q1 compared with the preceding Q4's US$61
million, said Creative Labs president and chief operating officer Craig
McHugh.
Q1 revenue is expected to be between US$130 and US$140 million, he said. Revenue for Q1 last year came to US$184.6 million.
Mr McHugh said adverse 'macro-economic conditions' will continue through the company's coming Q2.
Due to this, and the possibility that Creative may be
'de-emphasising' some of its 'underperforming businesses', revenue this
quarter is expected to be lower than that last year, Mr McHugh said.
In Q4, Creative sold US$69.8 million of personal digital
entertainment products, equivalent to 50 per cent of its total Q4
revenue. In the year-ago period, revenue from this category was US$94.2
million, or 57 per cent of total sales.
Europe accounted for 40 per cent of overall Q4 revenue. Then came
the Americas, with 34 per cent. Asia and the rest of the world made up
the remaining 26 per cent of sales.
Creative completed the sale and leaseback of its headquarters
building in Jurong for $246.8 million in Q4. It has leased back the
building for five years, with an option for additional lease periods of
three and two years.
The sale gave Creative a gain of US$147.9 million. This amount will
be treated as a deferred gain, to be amortised and recognised in the
company's income statements over the lease term of five years.
Creative also made a US$100 million loan repayment after the close
of Q4, and this will be reflected in its balance sheet for the current
Q1.
Creative's share price closed unchanged at $5.80 yesterday.
definitely, it doesn't worth 5 dollars.. it can be penny stock..
Can be even lower !
CIMB 7 Aug 2008 :-
Creative Technology (S$5.80) - 4QFY08 results - Core business still suffering
Core earnings within. Excluding the one-off charges and chairman’s gift of shares to
employees (which collectively amounted to US$10.5m), US$21.3m losses for its
underlying businesses in 4QFY08 were fairly close to our estimate of US$20.9m.
Sales slipped 16% yoy to US$140m in 4QFY08, slightly ahead of our forecast of
US$133m. All product segments posted yoy decline with the exception of
speaker/headphone segment. The poor PDE sales (down 26% yoy) again pale in
[ 4 ] CIMB-GK Research Pte Ltd 7 August 2008
comparison with iPod sales. Apple earlier reported 12% and 7% yoy shipments and
revenue growth respectively, for iPod products in the June quarter.
EBITDA margin remained in the negative territory in 4QFY08, reaffirming our negative
view on its underlying businesses. Gross margin was relatively flat yoy at 20.2% after five
consecutive quarters of yoy improvement. Although Creative continued to make headway
in lowering opex, the company will not be able to generate positive return based on
current level of sales and gross margin.
Balance sheet is its only bright spot in this set of results. Creative ended the year
with US$295m net cash (excluding the US$37.2m investments), up from US$193m as at
end-March, and represents about 81% of its current market cap. This was achieved
largely via the disposal of its buildings in Singapore. During the quarter, it bought back
2.5m shares at an average price of US$4.79.
Core businesses still struggling. Outlook for Creative remains gloomy as most of the
product segments it operates in are still facing stiff competition. Business conditions are
worsened by the current weak macroeconomic environment. We expect Creative to incur
losses again in the coming quarter, though losses should narrow on the back of lower
opex.
Earnings cut; maintain Underperform. We now expect Creative to post losses for
FY09 (vs. our earlier expectations of US$23.6m profit), and have also cut our FY10 profit
forecast by 40% after adjusting for our lower sales, gross margin, and opex
assumptions. We have also introduced FY11 forecast. Our target price, still based on
0.85x P/BV is reduced from S$5.31 to S$4.55. Maintain Underperform.
Wow. Is this an all time low?
Anyone still holding onto this counter?
6.7! market tumble but this stock went up! something brewing!
Now still going strong ! Today is already S$6.5 liao ! I think it is still cheap to invest. This company is now cash rich after they sold their building. Prepared to hold long term, it is still worth holding this counter. Good Luck.
Wah! Last 2 days cheong more than 30 cents
Got this from SJ's blogger's corner
CREATIVE ANNOUNCES Q3 FY08 FINANCIAL RESULTS
Revenues for the third quarter were $150.3 million, compared to revenues of $183.8 million for the same quarter last year.
Net income was $3.0 million for the period, with earnings per share of $0.04.
This
compares to a net loss of $23.6 million with a loss per share of $0.28
including restructuring charges of $3.5 million for the same period
last year.
During
the third quarter, Creative Chairman and CEO Sim Wong Hoo gave 668,800
of his personal Creative Shares as a gift to 972 employees of Creative.
During the third quarter, Creative purchased 2.5 million shares under its share buyback program at an average price of $4.68.
Check out this counter's Bollinger Band. They are really really tight.
Large price change may occur soon.
How come today have so many X transaction ? Can anyone translate ?
| Day High: |
6.110 |
Net Change: |
0.000 |
Total Value: |
65,330 |
| Day Low: |
6.090 |
Last Done: |
6.110 |
Volume: |
10,700 |
