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

To: j rector who wrote (1615)	1/4/1998 10:52:00 PM
From: Tensane 1	Respond to of 7111

J, My feelings exactly, stick to what got you here. Also, I feel you are right on as to the expansion of the PE as the growth keeps coming. I guess you said it better than I, but that's what I've tried to get to in my last posts, sooner or later, other people are going to notice, and we get higher PE's. Kevin

To: j rector who wrote (1615)	1/4/1998 11:35:00 PM
From: larry watson	Read Replies (1) \| Respond to of 7111

J. I have often wondered about Radica's low p.e., comparing it to say THQI, with a p.e. in the 30's and which has had a pretty good run up in the last month. I realize this is not a perfect side by side. Nevertheless, here is why I think Radica's p.e. doesn't yet stick above 20. First, it doesn't have a long positive history with its product. Thqi's been moving positively since mid '95, Radica mostly since early '97. This can probably be overcome in time assuming continued positive earnings growth. The second, and a little tougher to put your finger on and probably more difficult to overcome, is this - Radica's products aren't closely associated with an already established and socially endemic product, e.g. computers, Nintendo, and the like. Radica is out there with its products all by itself. It doesn't stand on the popularity and success of Nintendo, Sony, Sega. Thqi on the other hand probably can attribute a lot of it's success to the general success of Nintendo, Sony and Sega. Radica has no such coattails. There is an upside to this - Radica can make its own destiny. Its success isn't tied to the viability of some other product. I think what Radica has to do is establish its product as something other than just another toy. It needs respectability. The Nascar and other endorsement deals will help tremendously and are precisely the sort of thing that is needed. A stellar product line in '98 is also fundamental. So, I think we're on track, but the 30 p.e. I think is a ways off. Anyone - could some of you with experience in having analyst coverage explain what they (analysts) are waiting for. Is it earnings? longeviy? volume? price? What??? thanks larry