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

To: Jerry Frost who wrote (2033)	1/18/1998 10:41:00 AM
From: Scott	Respond to of 7111

Wayne, You are right in that fathers day sales begin to impact in Q 2. Another point that makes this your not so typical toy stock. Since you have the adult appeal, and particularly the appeal to the sportsman, you have a stock that performs well outside of the xmas season. I don't think you will see Tiger products moving off the shelf during fathers day. I know this may be old hat to some, but for those of you who are new to the thread a point that makes the stock attractive in the near post holiday season. Best Regards, Scott B.

To: Jerry Frost who wrote (2033)	1/18/1998 12:02:00 PM
From: Wayne	Read Replies (1) \| Respond to of 7111

Jerry, David, Hope David (or anyone else) will jump in if I'm mistaken about any of this. Perhaps David will expand further on your Asian Flu question for all of us. Is Bass Fishin a Fad? It may be to soon to tell but I think not. Seems like I've been watching Bass shows on TV for 30 years and the sport of fishing just keeps growing. The source of new fisher men are baby boomers and their kids. With the intro of Junior Bass (a very cool move by Radica and one that I think could be a mega hit) what a lead into the other games. Fishing is not going away. How well Radica controls market saturation, expands it's markets and continues to put new twist on the game, remains to be seen. So far, they are hitting on all cylinders. I think we see continued strong sales into 1999 and I doubt that (for a very long time) the sales of these quality/unique games will fade to a trivial part of revenue. NASCAR margins? Pat Feely said that the NASCAR game is high margin. Not as high as Bass and some others but not an OEM product. Sounds like it is equal to the high margin games less the royalties paid to NASCAR and they aren't saying what that is. I think Mr. Feely's words were "it is still very profitable". Trail Blazer is a RAdica label and IMO better than NASCAR but, may not have the demographics that NASCAR will. Should sell to some of the same and be another success. The sleeper is the new concept that is under the tarp still. Will be introduced in fall set. A original concept like Bass was when it came out. Keep in mind to what Radica is doing with the VMS and the price range the games are in. Asian Flu? Only seems to effect Radica by association. One exception to this is perhaps some devaluing of what I think is minimal properties in Hong Kong ( David covered this). Consider that Radica is cash rich (Hell of a strong balance sheet no debt to speak of) and interest rates are up in overseas banks where their deposits more then likely are. With Q4, those deposits grew in a big way. Sounds like Radica also keeps most of their cash in US$ so won't get beaten up in devaluation of currencies. I also think they may reap some rewards from lower cost of materials as well as cheaper labor (only 4% of manufacturing cost anyway) due to how the economics are panning out in the region. If they had a ton of debt and had to pay interest on big loans, the story may be different but, that is not the case. Radica has what seems to be a Teflon coating to most of it. Perception is biggest difficulty that I know of. All IMO, Wayne