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Can Creative Technology conquer the world again?

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For a company that has sold 400 million Sound Blasters, Creative Technology is an iconic homegrown company that I always admire and respect. The founder and CEO, Sim Wong Hoo is a legendary entrepreneur who had put Singapore on the world map and made us proud to be Singaporeans. Certainly, there are  not many people who could challenge technology giants like Apple and Huawei and sued them successfully for millions. But it really pains me that Creative Technology has fallen hard in recent times.

Can Creative Technology roll back the time and restore its former glory? Earlier this year, share price stormed back in style, surging from $1 to an incredible $9 within a week upon the release of its new marquee audio product. The resurgent share price indicated all is not lost for Creative Technology.

Indeed, it has been treacherous journey for investors of this venerable technology company. Share price of Creative Technology had plummeted from $60 in 2000 to an abysmal $1 as recent as 2017. Long-term investors could be forgiven for giving up on this counter. But is this stock really worthless?

Recent revival in the share price demonstrated that Creative Technology is still capable of staging a comeback and we should not write off Sim Wong Hoo’s team yet.

Creative Technology

To make money out of Creative Technology stock, investors must be disciplined enough to set entry and exit levels. Fundamentally, this stock is not a growth nor dividend counter. As a growth stock, revenue growth is an important factor to consider for investors. But the problem for Creative Technology is that sales had free fall to such alarming level that it takes a very ardent shareholder to keep faith with the management. Will the much touted product, Super X-Fi, turn the tide for Creative Technology?

Legal windfalls for Creative Technology

If investors look back, Creative Technology had been making losses for the past five years. The only exceptions were [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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Updated: October 11, 2018 — 1:31 pm

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