The following is a letter I wrote to Individual Investor:
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I have written two letters to II, and I have received no
reply. I can only assume that this company pays little regard
to customer feedback. If anyone reads this letter, please
forward it to Jonathan Steinberg.
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For the third time, I would like to address your website's
inaccurate portrayal of THQ's trailing EPS and P/E.
Despite your realistic appraisal of the "blowout quarter," you
still have not changed these numbers on THQ's Magic 25 page.
Trailing EPS is not .28, but .50, since no one (except II)
recalculates historical EPS to adjust for secondary offerings.
The trailing P/E is 14.5, rather than the 25.89 you report.
I wonder if Jonathan Steinberg ever reads these reports on THQ.
I'd assume that he would do so, especially considering the
ownership position of 9.5% by WisdomTree.
During the recent conference call, he asked THQ management why
the stock consistently trades at a discount to others in the
industry. Perhaps his company should use its resources to
accurately represent THQ as an undervalued company with a
strong business, rather than as the overpriced, high risk
stock that II has suggested. If I had not already been a THQ
shareholder (since 2/96), I certainly would not have bought
the stock on II's "recommendation."
I've heard that Individual Investor Group or its associates
held a substantial short position in THQ after the announcement
of the secondary offering in December. Perhaps this explains
why the sentiment of II had changed from positive (in the 1/97
issue) to negative (and inaccurate).
When the Magic 25 included THQ, I had hoped that the increased
exposure would benefit THQ and its shareholders. To my amazement,
the magazine has done little to convince anyone to buy the stock.
On the contrary, II has provided misleading "updates" that
would have led me to sell my shares of THQ, had I not been
aware of the high quality of THQ's business and management.
Individual Investor magazine has the potential to present
accurate and helpful information to thousands of investors.
However, in the case of THQ, this magazine (and website) has
provided poorly researched material and blind, misleading
commentary on both the company and the stock. II should
consider the influence that such flagrant dissemination of
misinformation has upon the stocks it reviews.
I am currently reconsidering my 2 year subscription to your
magazine. I have no interest in reading unwarranted, negative
publicity about this excellent company, and I have even less
interest in rewarding such irresponsible journalism with my
subscription dollars.
Sincerely,
Todd D. Wiener |
