I think Greenberg is still wrong re the accounting issues, but I'm admittedly not even close to being an accounting expert.
However, his conclusion that all companies in the same industry must fail is superficial to say the least. There is nothing wrong with being concerned if one or more companies in the same business as THQI has a bad quarter or so. However, I went through the same thing with CHKP last Q1. One by one, all of the software security companies came out and said Y2K problems would hit earnings. NETA, AXNT, ISSX, etc. all crashed, and CHKP went down with it, despite assurances from management that its business was fine. In general CHKP overcame the funk that infected the other companies because it had a different business model. So, a company like THQI that may have a different approach (and better products) can in fact thrive in the face of an industry wide slump. The shorts just seem to say, you can't thrive because you have a different business model or better products, but you can only thrive because your cooking the books.
I guess time will tell.
Good luck. |
