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Technology Stocks : THQ,Inc. (THQI)
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To: Apakhabar who wrote (13112)2/9/2000 2:13:00 PM
From: Todd D. Wiener  Read Replies (4) of 14266
 
RE: THQI posting negative comps-

I, too, find it amazing that THQ would give such guidance. Still, it's unlikely that MONT would say such things unless THQ suggested it. The only way I see that Q1 and Q2 would be lower than last year is if WM2K reorders in Q1 are low, Smackdown shipments in Q1 and Q2 are low (equal to or less than WM2K shipments), and selling, royalties and product development expenses are high. I agree that the expenses will be higher than last year on a % basis, due to increased TV ads and R&D from Genetic Anomalies. But if Smackdown is a runaway success (i.e., best-selling title ever for THQ), and if WM2K continues to sell through at a high rate, I would be surprised to see negative comparative EPS.

The conference call is going to set the tone for the stock's near-term performance.

Todd
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