Radica Games (RADA) Message Board

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Non-Tech : Radica Games (RADA)

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To: Wayne who wrote (3228)	3/3/1998 6:45:00 PM
From: Craig Brenner	Read Replies (3) of 7111

Radica has a very low effective tax rate (.6% - 6%). My concerns are the companies earnings will erode if (or when) this tax rate increases. The average tax rate for similar companies is around 35%; .6% is an extreme low. Anyone have any insights into this? Outside of the previously stated concerns about product mix and long term customer interest, I agree that many of the other fundamentals are quite strong. Before I buy, however, I would like to get a better understanding of the tax treatment they seem to be receiving. -Craig

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