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: Dr. Link who wrote (6049)	9/16/1998 9:33:00 PM
From: Skywatcher	Read Replies (1) \| Respond to of 7111

Wonder what this will influence in the toy world in general...maybe nothing. Toys R Us Corp., the world's largest toy retailer, said Wednesday it will close or sell 90 stores, cut about 3,000 jobs worldwide and take a $495 million charge in the third quarter as part of a plan to improve its performance. chris

To: Dr. Link who wrote (6049)	9/16/1998 11:11:00 PM
From: chaz	Respond to of 7111

Dr. Link: I don't think you've got it right. Let's suppose that, come December's CC, we learn of a $2.50 year. You're suggesting that Mgt+ Major Investor would be willing to pony up at least $37.50 per share for the outstanding 9,800,000 shares, or $367,000,000 (at 15X). Why would they do that when at $22.25, everyone would be made whole again, if that was their inclination? People wouldn't be happy about it, but if they offered $18.00 tomorrow, I suspect it would be a done deal. Management has no obligation to pay more than the market would be willing to pay, and for the moment at least, that looks like a 5, 6 or 7 PE. When you think about it, they've actually been paying less than even that, haven't they? If another round of repurchase is voted, they could get shares for the 5.5 we see now. By gradually reducing the float in this way, the total cost of any future offer price is reduced, and perhaps the day is not far off when they could get the rest for 1X sales. There's no question that they would have the cash flow to cover a bank refinancing of the company, and with any growth at all, they'd surely be worth more to a Mattel or Hasboro than Tiger was. Perhaps, Mattel would want GirlTech and HAS would want Radica...that would probably net an even larger sum. On balance, if I were one of those two, I'd be well tempted. That's what really bugs me about these low share prices....they make such a senario not just possible, but downright attractive!