How can we validate your value investment thesis on creative, since the price increase is unrelated to your assessment on assets and liabilities at time of purchase, but due to new information on product release?

The purchase was solely based on the assets. But the unlocking of value can be a myriad reasons:

1) Mergers and acquisitions (because they are trading cheaply)

2) Insider buys (because they are trading cheaply)

3) Earnings turnaround (business improved or expected to improve)

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The case for Creative is #3 with the new produce release.

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Basically you buy cheap and you will make money when something good happens. It is like investing in an F student who only needs a D grade to shift perceptions. If you buy an A student, you better hope it never get any other grade other than A.