Larry: I'll give it a try. Maybe I'm completely off the wall on this, but here goes. Tell me if I've gotten hold of some bad grass.
RADAF's quarterly revenue was up 87%. Assume that model for 1998.
RADAF's margin increased significantly, for year ended with the Dec 17 figures, it was 33%. Assume that model for 1998.
That would mean: FY '98 Revenue...$162,200,000. Net Income (33% margin) becomes 53,519,000. Shares outstanding 21,800,000. Per Share Net = $2.45. Versus $l.36. PE as of today ($15.375/share Divided by $l.36) = 11.3. Low share price for 1998 = $2.45 x 11.3 = $27.69...
180% above today's level. Allow for PE expansion to 15, share price for 1998 becomes $36.75...239% above today's share price. At 19PE,
RADAF sees $46.50 in 1998...300% above today's level.
Thus, for the price (retail) of one of the games.....you can buy one share of this neat little stock, and the tremendous upside that goes with it.
Anything above $2.45 would send this thing to remarkable heights. I, for one, see far more upside oportunity than downside risk. Chaz. |
