Wow, selling is relentless in RADAF. I don't subscribe to the conspiracy theory of why RADAF is going down. I don't think it is short sellers, or the option tail wagging the stock price dog, or any of that. It is simply RADAF holders who are long, who want to sell, and are doing so at whatever price they can get. Why do they want out? I am suspecting it is a combination of factors: (1) they have huge gains having bought in at $2 to $4 last year, and want to lock some of this up, (2) they know that they will not see a 1,000% return in this stock in 1998, like it had in 1997, (3) they might believe that RADAF got lucky last year with Bass Fishing, and that this success is not necessairly repeatable. - RADAF will have to prove itself all over again to them. They worry that maybe the new toys will not sell like the ones for sale last year, (4) they worry that RADAF margins are unsustainably high, and can only go down from last year's level. (5) even at $12 7/8, RADAF is still selling at over 3 times sales.
I am starting to buy more here under $13. I feel the selling is way overdone, but of course don't have any idea how much more overdone it might get. RR |
