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I half suspected the 91% drop in net income was due to one-time 'fines' paid by Apple. It is. Nevertheless, it is not a good set of numbers within decreasing YOY revenue and EPS. Bleak...
This is from Creative's official announcement:
"Revenues for the second quarter were $262.5 million, compared to revenues of $324.4
million for the same quarter last year. Net income for the second quarter was $7.6 million,
with earnings per share of $0.09. This compares to net income of $92.1 million with EPS
of $1.10 for the same period last year, which includes $82.0 million in net income with
EPS of $0.98 for the paid-up license from Apple for its use of the ZEN Patent in its
products. Excluding the paid-up license from Apple, net income was $10.1 million with
EPS of $0.12 for the same period last year."
negotiated parties? hmm... that's called share buyback? maybe it is not share buyback at open sales market, it's negotiated one.. but they as well should show who reduces the stakes - 1500 lots mah... for example, JF reduced stakes 1500 lots, or who who reduced stakes 1500 lots.. but they don't have this announcement.. maybe it is not required?!
well, that is 6.78 millions sing dollars share buy back...
Hi! jackjames, the share buyback can be off market purchase between negotiated parties, hence will not affect the stock prick in the market.
I got to pity Mr. Sim thought holding the majority stocks and see his net worth going down. I raise some hope when the new zen is out and bought some but let go when Apple comes out with iTouch and iPhone, now even MacAir and compare to Creative, well nothing creative coming out here, take a look at the new pc and laptops, which supplier are still offering creative sound cards? And their mp3? still suffers falling margins. if no more re-invention, guess even if the stock market is going up, I can only guess its profits and price will go down further
during the second quarter , Creative purchased 1500 lots under its share buyback program at an average price of $4.35 . how they manage to do it while the 52 weeks lowest is only $4.82 ?
CRABS...
4Q results Net income decreased 91.7% !!!!! 2H results decreased 87.4%!!!!
what is CREATIVE doing in year 2007 ? oh dear.... with this kind of results plus US recession, touch 1 dollar also no problems.
Sigh... Q2 earnings not up to standard again.
Oops $5/- , it has been sometime since it come close to this level....
Need a killer product to reverse the trend, otherwise may become a sub dollar counter.
Downtrend is an understatement....
TA charts still show downtrend in place.
I am not sure about Creative's business but tech companies exposed to the US market are going to face tough times ahead. I was bearish on this stock when it was $10
Wah.... crashed.... $4 levels soon?
I still believe in long term investment, just buy 2 lots, cost around S$13K, park there and may be 5 yrs later, the reward could be very fruitful. Have more confident on Mr .Sim !
Creative has been trading in a narrow band for about 1 month now. Looks like the festive season had little effect on its price.
Any christmas sale coming soon?
Lazyhorse,
Current price is attractive compared to historical price.
Did a quick check on its most recent results. YoY revenue is falling. Net earnings for this qtr was $1.3m of which $4.4m was gains from sale of their plant in Malacca. This means Co. made a loss in its operations of $3.1m.
If I remember correctly, Co. has been profitable for only 2 quarters in the past few years. The other profitable Q was when they booked the compensation from Apple. Sale of assets and compensation are one off earnings. Operationally it is still loss making. So long as this persists, the losses will be financed by its reserves (including sale of assets) and this will be affect its share price.
It would be more prudent, in my opinion, to wait till there is some sign of a sustainable turn around before commiting.
Thanks shplayer. But current price sure look very tempting....
Lazyhorse,
can't see how its going to happen anytime soon. Operationally, they are still in the red and cannot see the light at the end of the tunnel.
Personally, whilst their products are technically good, their product packaging and marketing is still lacking far behind the likes of Apple and Samsung.
Read somewhere that price target is $12. Could this be it ??
Bollinger bands are tight indicating that large price movement may occur soon. Direction of change is still relatively unclear.
However, volumes are really low and my analysis may not be accurate because of this.