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

To: Gary105 who wrote (2281)	1/30/1998 11:14:00 AM
From: mod	Read Replies (1) \| Respond to of 7111

Gary, Can you elaborate on your thoughts on margins? Seems to me that we could endure some decrease in margins if sales rise enough as a result. Let's say Radica puts on a major tv ad campaign that runs up their costs significantly, and knocks their margins down to 45-50%. If sales triple as a result, EPS will still soar. So I can live with the lower margins in that case. Seems to me margins are more important in companies where growth is slow, where the increased sales doesn't compensate for the decreased margins. Dennis