Wayne,
Here's an issue from the conference call I'd like your opinion on. In the last FY, the Sports category accounted for 50% of sales (see my post #reply-3264372), mostly fishing games, so say 40-45% of sales was fishing last year. On the CC, management said in the 1Q, the Sports category was 60% of sales, of which 50% was fishing games (and I'd guess more than 50% of the net income was from fishing).
IMHO, Radica will not be considered more than a "one-hit" toy maker, unless the fishing number starts decreasing, not increasing, as a percent of sales. Can the new line of games decrease this reliance on fishing for sales and profits? I don't know, but I suspect Radica will not get a decent multiple unless they can get fishing games to 30% or less of sales, and I don't see that happening in the next year.
Dennis |
