Creative Technology Ltd

[flyersummer]

LIM & TAN SECURITIES PTE LTD
Daily Review
26 April 2013

CREATIVE
Creative continued to erode shareholders funds for 3 months ended Mar ’13 with losses ballooning to US$10.4mln against US$1.5mln last year while sales declined 25% to US$33.8mln.

The continued weak performance was attributable to the uncertain global economic conditions as well as intense competitive pressures.

There is still no update on the company’s new tablet chip expected to be launched in China.

With the mass market launch of smart-phones and tablet computers, Creative’s existing product portfolio is increasingly irrelevant.

Management expects to continue to remain in the red for the next quarter and for revenues to remain at these depressed levels.

Despite the company trading close to its asset value, we see little reason to want to own it given its outdated business.

Maintain SELL.​

 

[Carnesir]

Quite surprised as to who is even interested to remain vested in this counter.

 

[flyersummer]

Sim Wong Hoo will be very depressed.

 

[knightdreamer]

This company was once Singaporean proud. Now seem like a sunset industry.

 

[koxinga]

Sim Wong Hoo will be very depressed.

the biggest problem is him, imo.

and the shareholders who are doing nothing about it.

 

[Dividends Warrior]

This company is still around.......

 

[Ghostz]

failure to "innovate"

used to be really "creative"

I'm not sure about it anymore...

 

[lumpyme]

and i was just thinking that creative should have pushed sound blaster's EAX to ps4 and xbox
by forcing EAX into games on consoles they would effectively push EAX back into windows thus reviving the good old days of surround sound and high end 5.1 speakers industry which once purely belonged to creative with their cambridge soundworks

 

[kaisin82]

one of the latest rollouts from creative

Creative ZiiEagle Movie Box promises 3,000 years of Chinese culture in one sleek burgundy package

epic fail

 

[addict951]

Sim Wong Hoo gave up liao, is it?

 

[koxinga]

one of the latest rollouts from creative

Creative ZiiEagle Movie Box promises 3,000 years of Chinese culture in one sleek burgundy package

epic fail

He has this unusual desire to do "chinese" related systems and products which I am unable to understand.

What makes Creative think that the Chinese appreciate what he (a 'outsider' no less) is doing?

 

[knightdreamer]

He has this unusual desire to do "chinese" related systems and products which I am unable to understand.

What makes Creative think that the Chinese appreciate what he (a 'outsider' no less) is doing?

True another of his product is "Han" I think like iPad. But now no news from it

 

[lumpyme]

they are also producing things that are fit for a market 2 or 3 years ago
just look at what they've been introducing recently, the android table without multi touch, the media player at an exorbitant cost, even their headsets are unable to compete at the top of the line

their key focuses have dropped off, cambridge soundworks is no longer in their product line, the sound blaster did not reinvent itself after windows vista, gaming community has moved on from luxurious 5.1 speaker systems with environmental and positional audio to high boom/bass 2.1 speaker systems

until they fix their long/short term strategy, i can only see them losing money

 

[Some-one]

the biggest problem is him, imo.

and the shareholders who are doing nothing about it.

The company is found by him. Of course he is reluctant to give it up. By the way, what can shareholders do since you say shareholders are at fault? Unless you hold controlling shares, small shareholders cannot do anything.

I believe there are people who ask him to step down. Just that he is not willing.

 

[Mecisteus]

shareholders can do something. they should have sold their shares.

 

[peterchan75]

Gone are the days where one needs a soundcard for each PC. They could have colaborated with mobo maker and supply chip.

 

[Some-one]

I'm sure this is considered as giving up instead of doing something.

 

[htngwilliam]

Game over....used to be Singapore top brand

 

[koxinga]

The company is found by him. Of course he is reluctant to give it up. By the way, what can shareholders do since you say shareholders are at fault? Unless you hold controlling shares, small shareholders cannot do anything.

I believe there are people who ask him to step down. Just that he is not willing.

i know where u are coming from but what u said basically implies small shareholders don't matter. i think every shareholder has a responsibility to question corporate strategy and direction as listed companies serve to create value for shareholders.

not a creative shareholder but 14 quarters of losses and no one gets the chop? no open discussion on corporate strategy? also, complete silence thus far on their china ventures after the buzz about their hanpad platform last year.

 

[Some-one]

i know where u are coming from but what u said basically implies small shareholders don't matter. i think every shareholder has a responsibility to question corporate strategy and direction as listed companies serve to create value for shareholders.

not a creative shareholder but 14 quarters of losses and no one gets the chop? no open discussion on corporate strategy? also, complete silence thus far on their china ventures after the buzz about their hanpad platform last year.

I am not vested but a quick look at its Annual Report shows that Sim Wong Hoo holds a 33.28% stake in the company. He could possibly be voted out if shareholders banded together to oust him out. That would include those different nominees of the company.

There are no fund managers as substantial shareholder so possibly, no fund managers are willing to put money in the company and so there are difficulties in ousting him out since Sim is also the Chairman and Chief Executive of Creative. Perhaps SIm should just take the company private instead of staying in SGX.