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Non-Tech : Radica

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To: jerald morse who wrote (48)10/23/1997 6:25:00 PM
From: Gary105   of 51
 
My take on recent questions:

1. Export is great for Asia - companies like Radica will continue to prosper.

2. Radica has more than adequate cash on hand to fund the expansion.

3. The bigger question re. Asian turmoil is its consequence on the world economy - which can impact world stock markets. If Asia slows, sales of everything from computers to software to steel to power plants slow - this will slow business for U.S. companies and the prospects for US workers which will affect their spending habits.

So the world is interrelated.

4. Re Radica's P/E, the Asian crisis will attract people to US bonds (strong currency) and interest rates should fall. This will justify higher p/e's for growth companies. If Radica continues to grow and if interest rates fall its p/e should actually expand at a given point in time.

all imo,

Gary
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