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

To: larry watson who wrote (1530)	12/27/1997 4:46:00 PM
From: Terry Backlund	Read Replies (2) \| Respond to of 7111

Larry and All, The following is my angle on RADAF. All based on historical numbers, and without figuring in future things such as coverage etc. June 10th PE 11 July 10th PE 15 Aug 10th PE 18 Sept 3rd PE 15 Oct 3rd PE 14 Nov 3rd PE 19 This is the past. Just divide the months by two and you have..... the future. Dec 17th PE 13 $17.68 Jan 17th PE 14.5 $19.72 Feb 17th PE 18.5 $25.16 If you add in the day before earnings PE for the last two quarters and divide by two you get 23 PE = $31.28 by March ? earnings. As I said before this is just MY angle, but since this stock is fairly prone to go it's own path as it has in the past, I will continue buying as it goes northward. See you all here next year...as in Dec 98 Sincerely, Terry

To: larry watson who wrote (1530)	12/28/1997 1:15:00 AM
From: chaz	Read Replies (1) \| Respond to of 7111

Larry: I'll give it a try. Maybe I'm completely off the wall on this, but here goes. Tell me if I've gotten hold of some bad grass. RADAF's quarterly revenue was up 87%. Assume that model for 1998. RADAF's margin increased significantly, for year ended with the Dec 17 figures, it was 33%. Assume that model for 1998. That would mean: FY '98 Revenue...$162,200,000. Net Income (33% margin) becomes 53,519,000. Shares outstanding 21,800,000. Per Share Net = $2.45. Versus $l.36. PE as of today ($15.375/share Divided by $l.36) = 11.3. Low share price for 1998 = $2.45 x 11.3 = $27.69... 180% above today's level. Allow for PE expansion to 15, share price for 1998 becomes $36.75...239% above today's share price. At 19PE, RADAF sees $46.50 in 1998...300% above today's level. Thus, for the price (retail) of one of the games.....you can buy one share of this neat little stock, and the tremendous upside that goes with it. Anything above $2.45 would send this thing to remarkable heights. I, for one, see far more upside oportunity than downside risk. Chaz.