Stock Name: Creative 50
Company Name: CREATIVE TECHNOLOGY LTD
Research House: DBS Vickers
Company Name: CREATIVE TECHNOLOGY LTD
Research House: DBS Vickers
DBS Vickers downgrades Creative Technology (C76.SG) to Fully Valued from Hold, cuts target price to $3.51 from $5.46, based on three-year historical 0.8x mean P/B, according to Dow Jones.
DBS Vickers says while stock backed by net cash of $5.20/share, “we expect further cash erosion if the company cannot create desirable products for the market in order to stem losses.”
Broker notes MP3-player maker expects another loss in current quarter as it incurs higher operating expenses for new products. Net loss for June-quarter at US$11.7 million ($15.8 million) on lower sales, higher R&D costs. Shares +1.0% at $4.05.
DBS Vickers says while stock backed by net cash of $5.20/share, “we expect further cash erosion if the company cannot create desirable products for the market in order to stem losses.”
Broker notes MP3-player maker expects another loss in current quarter as it incurs higher operating expenses for new products. Net loss for June-quarter at US$11.7 million ($15.8 million) on lower sales, higher R&D costs. Shares +1.0% at $4.05.
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