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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?

To: Dave H who wrote (8096)	11/21/1997 8:58:00 AM
From: Dave H	Respond to of 79450

re TRV oops, disregard. must have been a split, right? heh heh. -dave

To: Dave H who wrote (8096)	11/21/1997 9:01:00 AM
From: Dave H	Respond to of 79450

RADAF -- Article on 11/14/97 from CBS MarketWatch --------------------------------------------------- Hong Kong company thrives By Thom Calandra, CBS MarketWatch 11/14/97 06:18 PM ET SAN FRANCISCO -- Amid the wreckage of the Hong Kong stock market, a fast growing electronic games maker is thriving. Radica Games Ltd. had the audacity to announce it would expand a southern China factory as Hong Kong stocks rode the rollercoaster of a Southeast Asian currencies crisis. As thousands of investors this week prowled the streets of Hong Kong amid 10 percent and 18 percent rises and falls in the Hang Seng Index, Radica, once a troubled and money-losing maker of handheld electronic games, said it would spend $3 million to boost production capacity by 50 percent and its factory work force to 5,000 employees from 2,500. Pat Feely, the company's new president and a former chief executive of multimedia games company Spectrum Holobyte in California, said "it's uncertain there would be much of an effect on our balance sheet from the Asian currencies crisis. We do all of our buying in dollars." Investors in the company are speculating that Radica will begin to produce National Football League handheld games as part of the company's relationship with the Hasbro Games Group, which holds some NFL licensing rights. Feely told StockWatch from New York the company "has a tendency to work on these kinds of things." He added "we can't really comment on it." One San Francisco investment adviser, Mitch Levine, represents large shareholders in Radica and has been following the company's shares this year as they climbed more than 1,200 percent. (David Howell, the company's chief financial officer, is a frequent contributor to Internet bulletin board discussion groups.) Radica's remarkable comeback: Games, games Radica, as reported here in August, is engineering a remarkable comeback from 13 months ago, when a $21 million loss sent the company's Nasdaq-traded shares as low as 3/4. Now, the shares stand at 13 1/4, giving the maker of $20 handheld electronic games such as Bass Fishin' a stock market value of about $280 million. Yet some shareholders say the company's shares still sell for less than book value. Having abandoned the casino games business that dented profits earlier this decade, Radica now makes homey handheld games like checkers, dominoes and, oh yes, military assault simulations. They sell in large drug store chains and at Wal-Mart. Few if any U.S. analysts follow this company. Levine had seen the company earning 25 cents a share in the quarter that closed in July. Surprise: Radica earned 34 cents for the three-month period. Next fiscal year, Levine sees the company making more than $1.25 a share, which means it sells for less than 12 times projected earnings. That's cheap compared with other electronic games makers, he says. Feely, the president of the company, also said the company's shares are cheap when stacked against the stocks of other small and midsized games makers. In the quarter than ends Friday, the company could earn 50 cents to 60 cents a share, giving it as much as $1.08 a share for fiscal 1997, Levine in San Francisco said. Feely in New York declined to provide estimates. Research firm NPD Inc. says Radica holds 25 percent of the handheld and tabletop market in the United States. Milton Bradley, for which Radica manufactures handheld games, holds a 14 percent share. Tiger Electronics, which also makes games in China, holds a 42 percent share, NPD says. "We have an interesting story to tell," said Feely. He said he told investors this week in New York that "the shares should have significant upside." Bob Davids, chief executive of the Hong Kong company, said in a statement last week that Radica will complete part one of the expansion of a Dongguan, southern China, factory by May 1998.