Looks like the news that Apple will start selling iPod Shuffle, and has started selling iPod Mini at select Walmart stores is hurting Creative today.
Additionally, in the last few weeks Sandisk (a flash memory supplier) has entered the flash MP3 Player market and is doing extremely well. They appear to be outselling everyone in the flash based MP3 player sales including Apple. Sandisk has priced their players very aggressively in an attempt to gain market share at the expense of profit margin. Since Sandisk is a flash memory supplier their costs are most likely lower than their competitors in the MP3 market.
Watch CREAF closely as a close below $13 will probably result in a drop to the $11 - $12 range.
On the plus side Zen Micro sales continue to do well.
creaf stock price movement is a good example of what happens when:
1. managmeement touts huge sales levels before conference call
2. has conference call and says how happy they are with the great level of sales
3. says they made less money that the prior comparative quarter but seem confused when the one good analyts of the bunch asks them WHY?
4. says that profit is not necessarily what they want, they want sales, bot dont care if they make money.
5. hold $200m in inventory and then have their major competitor come up with a product even my mother would buy.
6. sell shares in a company before its stock price rallies
7. buy into a company that is now losing money and htey have to write down half it value even tough the purchase is only 2 years old.
GO CREAF GO. WHEN I HEARD THEIR CONFERENCE CALL I COULD NOT ELEIVE HOW STUPID THE MANAGEMENT OF THIS COMPANY SOUNDED. TYPICAL TECH PEOPLE, CAN DESIGN SOMETHING BUT SRE CANT MAKE ANY MONEY FROM IT EXCEPT FOR THEMSELVES WITH HIGH SALARIES AND ALOT OF OPTIONS (THAT THEY REVALUE ALL THE TIME).
THIS IS A LOSER!!!!!!!!!!!!!!!!!!!!!!!!!!!!
somebody threw stones at Shuffle bee hives.
Shuffle bees are native american bees, known
for their beautiful elegant white bodies. when
attacked they quickly fly out dancing in
shuffle random formations, producing a nice
they hive in apple orchards and have unforgiving stings.