SI RESEARCH: WILL CREATIVE TECHNOLOGY HIT ITS SECOND HOMERUN?
by Don Low
The company has partnered with iVideoSmart to allow users to have a taste of Super X-Fi for free on a limited basis.
iVideoSmart, a video publishing platform, has over 75 million unique monthly streamers in Asia and would allow Creative to rapidly scale up Super X-Fi user base.
Shipments to the US market would only commence meaningfully in 3Q19.
On a valuation perspective, at the share price of $5.57, stock of Creative is trading at a trailing 12-month 25.1 times price-to-earnings (P/E). However, stripping away the litigation settlements Creative received over the past 12 months, Creative would be in a net loss, rendering the positive P/E to be irrelevant for assessment.
Currently, the only investment merit – on a financial standpoint – for Creative is its strong balance sheet. Based on 1Q19 results, the company has US$75.3 million in cash against zero debt. At the current share price, the stock is changing hands at 2.6 times its book value.
Source: Shares Investments
http://aspire.sharesinv.com/59862/si-re ... d-homerun/