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Technology Stocks : THQ,Inc. (THQI)

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To: Purpleman who wrote (6637)7/6/1998 6:24:00 AM
From: Dale Baker  Read Replies (1) of 14266
 
Glen, from a fundamental point of view, THQI has executed beautifully. The current stock price is at least 50% less than what THQI should be trading for, given recent earnings and projected growth based on definite game releases.

The chart is shakier because a few analysts got their shorts in a bunch and provoked two selloffs. THQI has rebounded both times. Technically, if THQI stalls at 32 and falls again after earnings, you could have a triple top and serious damage.

OTOH, if THQI breaks through this level and continues, a year-long uptrend stays more or less intact. A stock split announcement would certainly improve the company's image of confidence in its prospects.

I am betting on scenario #2 with shares and call options.
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