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Non-Tech : Radica Games (RADA)

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To: Zirdu who wrote (6874)8/21/1999 2:40:00 AM
From: Gary105  Read Replies (3) of 7111
 
Comments:

1. We shouldnt confuse share price with company. The company is very well run and appears to be sowing seeds for future - eg electronic arts alliance.

2. Share price went from too high at ipo to too low at correction to too high - when it ran above $20. Fahn shorted because they believed earnings had peaked and they were right. Market assigns p/e based on earnings and growth. Earnings are reasonable now but shrinking compared to previous year to year quarters.

3. Which brings up key question - when do we expect earnings to show positive year to year comparisons? I believe the answer to that questions holds the key to where the bottom is. Stock in this company is once again on my radar screen given insider buying which I view as advance indicator - insiders generally sell before peak and buy before bottom.

4. I agree with earlier comment about stock buy back which I opposed last year and early this year. Book value and cash value would be higher without buyback. As stock approaches book value, buyback becomes appealing.

5. Re. products, I like most of them but am personally opposed to hunting themes - while it may appeal to some sportsmen, most people will not buy it for their children.

Gary
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