Mr. Davila,
As for milk on my face I am afraid I am not familiar with that euphamism. If you meant to refer to the put down "egg on my face" this only occurs when an egg has been broken. If you are refering to "crying over spilled milk" the last time I did that my father whipped the dawg sh** out of me and have never repeated that error. I must admit though that I have had my head between my legs alot the last 1/2 hour or so. After reading the last couple of days posts by supposedly astute investors and traders alike I have been doubled over in laughter at more or less complete lack of fundamental knowledge in corporate stategy, basic balance sheet interpretation, and complete lack of any long term foresight. It is apparent most of you are traders who consider yourself investors. All the sophmoric bellyaching and blame passing is really quite hilarious. I will not go into all the details on the balance sheet issues, suffice it to say I am VERY pleased with the stub earnings, you geniuses do some studying and figure out why. Its all there in black and white. As for my position at this time, well I lost a ton of money on January 15 & 17.5 calls. It was a sound play and I take my losses the same as I take my gains, with a grain of salt and no whinning. Having said that I still hold a moderate amount of the stock long and will comfortably continue to do so. I added as late as last month at 13 7/8. I feel very secure with this company and besides the books here are a few reasons on the speculative side..
1.) GKM: PR..."Pursuant to the agreement, GKM will advise and assist Radica in identifying and evaluating financial and business opportinities that will enhance shareholder value." This means to me Radica is shopping, with 47 million cash and 14 million AR and not actively buying stock at this time I believe Radica is on the hunt to acquire not sell out. Do you realize if Radica had not re-purchased any shares last year they would have 100 million cash on the books?
2.) Hiring former Zindart CEO: To me this indicates ZNDTY is a prime acquisition candidate with a low PE, cash, very little debt and a big odm contract with Mattel. They can be had cheap practicaly double their revenues and increase earnings on an accretive basis, plus have major production contracts with the 2 major toy distributors.
3) Girltech: web page is now fully up and has 4 very interesting items for purchase at retail outlets. Also, starting girltech clubs with a $19 price tag for start up kit. ZNDTY does a lot of paper toys and would be synergistic along this product line.
4) Deerhunter Game: The number one selling computer software game of the year was deerhunter 2. I don't believe Lunker Bass II made the top ten, could the hunting game prove more lucrative than the fishing game. It sure has in the software industry. This game is supposed to be introduced to the market this month I believe and should have excellent carryover next Christmas.
5) to many other new toys to go into.
6) The overall chat by analysts lately about the toy industry coming out of its real time inventory restructuring that has occured since the Toys'R Us debacle, and looking at them as strong buys because of their valuations and successful restructutring.
7) WEDB extremely low first and 2nd quarter estimates put the bar pretty well on the ground for Radiaca to beat. It's a set up!
8) The starwars ODM line which is already being haled by analysts as likely the biggest sellers of the year.
These are but a few of the future cards Radica has stacked in its favor. I still feel more comfortable with it than many of my "blue chips" as far as potential percentage gain in the next two years. On a final note, one only gets egg (milk) on ones face if an egg is broken (if one sells), until that point it is simply unrealized gains or losses ( no egg has been broken) so if anyone has egg on their face it would be those who sold prematurely at a loss. I promise, If and when I sell at a loss I will come and let you gloat over it, but you will hear no whining. On the other hand, if I sell at a nice profit in the future I promise not to come and throw eggs at yee as it would serve no constructive purpose.
Best Wishes,
Swedelo
PS: Mr. Howell please don't let a few short term traders and their frustrations being taken out on you, keep you from monitoring the thread. If I have a question for you as an investor I would like to know an intelligent response, as you have always provided in the past, will be forthcoming if legally/constructively prudent. Knock'em dead with your presentations at the upcoming toy fairs worldwide! |
