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Non-Tech : Radica Games (RADA)

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To: E.Bogusch who wrote (2428)2/9/1998 9:18:00 AM
From: mod  Read Replies (2) of 7111
 
On first glance, it would appear to me to be a short-term negative for Radica. I would assume Radica will lose the Hasbro OEM business (which is not a big profit center) to Tiger, and Tiger gets access to better financing/research/distribution etc. OTOH, the fundamentals of Radica don't really change, so long-term the outlook remains positive.

The key question is how will Radica's relationship with Hasbro change? Hasbro/Tiger is a much more formidable competitor than Tiger alone.

I wonder if this is the news that emboldened FAHN et al to short Radica recently. Since the Hart-Scott-Rodino waiting period (15 days if cash tender offer, otherwise 30 days) has expired, this deal must have been signed for a while, and therefore there was ample time for the information to have become known. Since no one could think of a rational reason to short Radica, this news suddenly makes the decision to short RADAF much more understandable.

Dennis
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