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Technology Stocks : THQ,Inc. (THQI)

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To: Apakhabar who wrote (12804)1/27/2000 10:24:00 AM
From: Madharry  Read Replies (3) of 14266
 
That last paragraph without any clarification by HG shows to me just what a shill he is. When I saw this stock plummeting down and ROcker on CNBC I knew it was just a matter of time before HG started writing about it. Reserves have nothing to do with capitalized Software expenses. ANy person who has taken accounting 101 and passed ought to know that. Reserves would be a function of total accounts receivable and historical experience with bad debts and returns. Capitlized software expense has to do with how many new games are being developed relative to the past. If what the company is saying is true I would expect reserves as a percentage of accounts receivable to go down and capitalized software expenses to go up- If the reverse is true I would be very concerned.
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