I don't think I buy that. Buybacks reduce liquidity, and if, as you presume, Radica's earnings don't grow, that further reduces demand. Who wants to buy a flatliner? The only advantage I could see would be a full repurchase, and then some large dividends to distribute earnings for which there could be no further spending for stock.
Personally, I'm beginning to think that Radica's year was 1997. I once thought that $50 - $60 was in the cards for this year, but since then, I've changed brands.
On the other side of the coin, one day I think management is sure to wake to the need to do something about the stock price. As we all (or most all) continue to grumble, it's a big ho-hum to them just now. Or seems to be.
Only when Pickup and Management together decide to move the price will we see some real action. And what will that be, and when? Will we get a three bagger from here? A fiver? Suppose earnings double and we get a 20 PE. That would give us a six-bagger. Who's willing to wait five years for that?
That's why I think 1997 was the year. Darn, that's the one I missed. |
