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Strategies & Market Trends : The Rational Analyst

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To: HeyRainier who wrote (1500)10/26/1998 8:59:00 AM
From: mod  Read Replies (1) of 1720
 
Ranier,

Most of your first posts related to Radica's inventory. I noticed you avoided responding to Swedelo's response related to the inventory questions you raised.

I agree with Swedelo, you failed to take into account that Radica went from a capacity-constrained year to a more normal year, which of course will lead to an apparent large increase in inventory. In reality, they are merely achieving a normal level of inventory for their business.

I have some concerns about Radica myself, but given their current p/e of 5, I certainly don't see them as a good short.

Dennis
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