SHARES of Creative Technology, whose music players compete with Apple Computer's iPod, had their biggest gain in 12 weeks on optimism that the company will sell more of its Zen and MuVo devices during the Christmas season.
Creative's stock rose 3.9 per cent or 50 cents to close at S$13.20 in Singapore yesterday, their largest gain since Aug 31. The stock is the worst performer on the Straits Times Index this year, having fallen 46 per cent, while the benchmark has gained 9.9 per cent.
Singapore-based Creative, which introduced its Nomad Jukebox portable music player a year before the iPod, has given up trying to wrestle market share from Apple and will focus on shoring up earnings instead, chief executive Sim Wong Hoo said recently.
Creative posted an 85 per cent slump in profit to US$700,000 in the three months ended Sept 30 after cutting prices on its music players.
'Management has realised the folly of trying to gain market share and toppling Apple,' DBS Vickers Securities analyst Don See said. 'Creative is more profit-conscious and will have a better quarter as more people buy MP3 players during the Christmas season.'
Mr See recommends investors buy Creative's shares and expects the stock to climb to S$18.10 in 12 months. - Bloomberg
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$18!!?? Siao! I wont even buy this at $10 if I was a serious investor.
But based on technical analysis, The stock seems to be on an UPTREND.
