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Non-Tech : Radica Games (RADA)

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To: Ron Harvey who wrote (6032)9/15/1998 1:37:00 AM
From: StaggerLee  Read Replies (1) of 7111
 
What "buying opportunity?" For RADAF to advance they need to produce games which significantly surpass their one-hit wonder, "Lunker Bass Fishing" by significant amounts. I'm talking GROWTH, not matching revenues. Let's face it, after this Christmas the fishing games are going to be a mid-90's relic like Rock'm Sock'm Robots. What's going to produce even more revenues and earnings next year? Any chance that '99 revenues could drop by 50% or more?

This company isn't making Prozac. It's not making Corn Flakes. You people trying to assign PE ratios to earnings from diminishing product lines are setting yourselves up for a huge let down. It's like all the THQ groupies expecting Q1 '99 to surpass this year's one-time WCW windfall. Ain't gonna happen. Take the short-lived gains, assign them a PE of 1, and then re-run your valuations. You'll be surprised at how little these companies are really worth when you exclude their fading cash cows.
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