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


To: rogermci® who wrote (1571)12/30/1997 10:30:00 PM
From: Gurupup  Read Replies (1) | Respond to of 7111
 
This is already a overweighted position with me, but I was 30% of the volume today on the buy side. My number crunching comes up with over $2.00 for 10/98, and at 8x earnings with this kind of growth, I am pressing the devil out of it. Here is what I am hearing on the bear side.

1.Xmas is over (true)

2.RADAF is a one product company (false)

3.Toy stocks peak after Xmas (we'll see)

4. It is 5 letter stock, involved in Asia (true)

5. Earnings have peaked, can't get better (false,IMO)

6. Stock is up from $ 1 5/8, can't sustain itself. (With this growth rate?)

7.Toy stocks are cyclical and don't deserve high multiples. Hmm, let's see THQI 26x,MAT 23x,HAS 18x, seems to be decent multiples for cyclicals.

8. No one follows it, no research. ( someone must follow it by definition, true no research,YET.)

9. You told me about it at $6-7-8-910-11, I can't buy it up here. Stupid argument, it doesn't make any difference where they came from, only where they are going, IMO.

10. They shouldn't have earned so much in the 4th quarter, they should have kept some in reserve, saved it. What planet are you from?

You pays your money, and you take your chances, but this seems to have a lot of room left on the upside.