David,
I would appreciate a response to a few questions I have concerning RADAF, and the manner in which it is handling it's investors, and securities:
1.) I agree with the statements made here by many concerning the "scarlet F" at the end of RADAF's trading symbol. My question: Has a symbol change been discussed and/or approved by the board? And, if so, when can we expect to see the change?
2.) Small cap stocks, no matter what the value, are not moving. The advent of mutual fund, bond fund and index fund investing caused by the advent of 401k and other retirement programs have led to nothing but a large cap & "INCOME" market. The only way a small cap will ever see any appreciation in this market (and I now realize this IS the market of the future) is for one of three (3) things to happen. First, the company through tremendous growth & acquisitions becomes a large cap stock and/or index listed. This would require a market cap of over 1 billion dollars or in RADAF's case approximately $550/share. Even I don't see this happening...LOL. Second, the company can sell out or merge with an existing large cap ( MAT or HAS) at a nice premium to current market valuations. I don't know if RADAF has had talks along these lines, and am aware it would be inappropriate for you to comment on anything along these lines, if in fact you were in these kinds of negotiations. Third, and I feel most importantly, these low PE, high earnings companies like RADAF, will have to start paying a dividend. I feel the only way to get any interest (besides those already stated) is to get the "INCOME" buyers interested. For instance, over the last year if you had paid 25% of net earnings ($13million) in dividends, shareholders would have realized approximately a 5% yield on their investment at current prices. Also, the company would still have retained 75% ($38mm) for capital purposes and growth/investment ventures. I would think Mr. Pickup & Mr. Davids would like this idea as well, as it would have grossed Mr Pickup (at .60/share) on 6 million shares $3.6 million; and, Mr Davids would have realized gross income of $2.16 million on his 3.6 million shares. My question: has the board discussed the possibility of paying a dividend on its common stock, or is that completely off the radar screen?
Best Wishes,
Swedelo |
