Jimmy,
Thanks for not being rude in your response..
But yes, he is the creator of the product, and he is on the managment team in Dallas that creates all the games for the company.
Dont get me wrong, RADAF is doing great, and I am totally happy for my inlaw, walking into 12,000 a year or more for creating their top selling game ever and getting a bonus the size of half my earnings is very nice for him, but keep in perspective, where does the company go from here?
There growth was due in part to the niche that the game created. It was somthing new and interactive. I didnt like Bass Fishing cause i never caught a fish <lol> but it was a game that the consumer hadnt experienced before, and it is popular with kids and adults.
But there is a point of saturation that the company has seen with it, thus the marketing scheme of expanding their product line eg. Deep Sea Fishing, they are trying to capture market at its peek, as it is nearing maturity..
Nascar is a good idea, and my inlaw feels good about it, but he knows that it isnt of the magnitude that will generate FORWARD earnings like Bass Fishing did.. thats all I am saying.. for a company to move from sub 1 to 19 is outstanding! But to move from 16 (today) upwards isnt going to be created by a game that cannot generate revenues like that game did for them.
Less than 1 year ago this company was at less than 2 dollars a share, and if it doesnt keep pace, the pace that Bass Fishing generated it cannot sustain 300% increases in earnings like last year.
Gains of that magnitude can easily be erased unless strong follow-up is made.
If you look at company fundamentals you will see what I mean, all the key ratios are at all very high levels for the company. And with a Beta of 1.39 in an industry that isnt near these highs, the valuation can be eliminated with anything less than great earnings forward..
Why would I want my inlaws company to fail?
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