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Non-Tech : Radica Games (RADA) -- Ignore unavailable to you. Want to Upgrade?

To: Kulnor who wrote (1432)	12/19/1997 12:17:00 PM
From: j rector	Respond to of 7111

HI All, This downdraft must be end of year tax selling or company-independent moves to cash. Good news is that it has nothing to do w/Radaf and its prospects, bad news is that PE multiple may contract with market contraction for a period of time. My most pessimistic earnings for next year is $2.50/share, so at current price (13.75) we'd be looking at P/trailing of 5 in a year. Even in the darkest days of the 1970's, this valuation was low. Just bought 2K more. I think David said that if the stokc dropped down to 10 or so, that buyback program would be instituted---this was before earnings came out. If I were RADAF, I think kicking some of that 40MM toward buyback today would be a good short-term investment.