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

To: Kip518 who wrote (6682)	2/4/1999 7:32:00 PM
From: Todd D. Wiener	Respond to of 7111

It's true that the earnings report wasn't as great as usual, but there are several reasons for that, such as higher expenses at the GirlTech business and other startup manufacturing costs for new games. Also, the company has warned of a higher tax rate in 1999 than the historical rate. And a company that has 45% of the market is hard-pressed to maintain high double digit growth. RADAF is still very undervalued, slightly more than the rest of the toy stocks. But the industry is in the dumps. It is recovering, though. I think that RADAF has, and will continue to be, a prime takeover target for MAT. If MAT were to buy RADAF, it would immediately be competitive with HAS. In most other areas, MAT leads HAS. But not in handheld electronic games. This is MAT's opportunity. In the meantime, RADAF could buy other toy companies that are undervalued, thereby diversifying its product line and achieving manufacturing cost savings. I have been disappointed with the stock, but not the company. I still hold the shares, and I expect to continue to do so. But I recommend that RADAF should be seen as only one of many toy stocks, using a portfolio approach. Todd