Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: rogermci® who wrote (2682)	2/18/1998 9:10:00 AM
From: Gary105	Read Replies (1) \| Respond to of 7111

Roger, suggest you read David's posts on this matter. Tax has been and will continue to be very very low for the foreseeable future as a result of their business structure.

To: rogermci® who wrote (2682)	2/18/1998 9:42:00 AM
From: mod	Read Replies (2) \| Respond to of 7111

Roger, Knew I must have missed something. You are right, I should have adjusted for taxes. I would assume Tiger, based in the US, was already fully taxed, so I'll leave their numbers alone. HAS paid taxes at a rate of 35% last year. RADAF paid 0%, it appears. So we should knock 35% off RADAF earnings in an acquisition. For last years earnings, I get $0.88 fully taxed, 14.25x results in a $12.40 buyout price now based on last years earnings. Looking forward, $3.00 untaxed is $1.95 fully taxed, 14.25x is $27.80/share buyout price in a year. [I am now putting on my flameproof asbestos suit in preparation for the following editorial remark] So maybe the upside to RADAF is excellent (75% in a year), but not nearly as high as some of the numbers being thrown around on this thread. The low tax status of Radica makes a huge difference in a buyout in a year by a US toy company (from $42.75/share to $27.80/share). Dennis