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Non-Tech : Radica Games (RADA)

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To: jan_mike who wrote (1813)1/13/1998 10:46:00 PM
From: j rector  Read Replies (1) of 7111
 
There was a poster awhile back who said that the stock
was worth no more than 10x trailing based on lack of product
diversity and size. If he is right (current valuation
would say he is), then if:

1) new products take off
2) revenues increase as Skipard suggests they will.

The stock will trade at more than 10x trailing by next Dec.
If our numbers are correct, then we should be looking at a minimum
of 12x trailing by next December, which should put the stock at
a minimum of about $30. I'll take a 250% increase in 1 yr.

My only reservation is the ability of RADAF to fill the new
plant capacity. Based on everything I've heard (demand for
existing games, new game introduction,) they should do this
easily. I know I'm preaching to the choir, but I'd love
to hear some risk factors that we haven't taken into account.
This stock appears to be as much of a no brainer as it was
last year at $4.
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