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

To: james r. davila who wrote (6521)	12/17/1998 11:23:00 PM
From: Hank	Read Replies (1) \| Respond to of 7111

So exactly what are you trying to argue here? Are you arguing that RADAF's growth prospects are so poor that it should trade at a trailing P/E of six? Or are you arguing that small caps are dead and will never rebound? Is it a surprise to you that fishing games still make up the majority of sales, as they have for the last year? Would you like to estimate the percentage of sales attributed to fishing games for next year given the new product line for 1999? When you say sales are paltry compared to other small caps, which companies are you referring to? Your logic is very interesting given the fact that all the serious earnings warnings that keep popping up on Wall St these days seems to be coming from the blue chips while small caps like RADAF continue to blow away estimates. If you want certainty, then buy KO. They're sure to miss estimates next quarter.

To: james r. davila who wrote (6521)	12/21/1998 11:38:00 AM
From: THESTOCKMAN	Respond to of 7111

The point I was trying to make was that when a company increases their earnings by 77% year over year and the stock price doesn't even reflect that increase and you have another year ahead that everyone knows will be even better, it is pretty likely that somewhere along the line, the stock price will begin to reflect the dramatic increases in sales. And in answer to your statement concerning their fishing sales being 40% of the companies earnings, Non-Fishing profits grew in 1998 by 67% per the conference call! In addition, Radica produced 21 different games with at least 100,000 units or more sold. Last I heard, they were only producing four fishing games. So much for your one-trick pony theory which seems to have been spread mostly by the shorts in the past. Another point brought out in the conference call that I thought was very significant was the very good use made of Radica's advertising dollar: Tiger spent over $40 million vs. Radica's 7 million and yet Radica is the company that gained major market share over Tiger. In fact, in just one year Tiger's margin over Radica flip flopped with Radica taking to top spot. This trend should continue next year and will most likely widen with the new hot games coming out for 1999. TheStockman