Congratulations to all those who were wise enough to buy THQI during the past 2.5 years. A few months ago (before THQI broke the 12-month head-and-shoulders bottom at $13), I said that THQI would need to show the Street that it could achieve consistent blowout numbers, or else its stock would not receive a deserved multiple. I referred to this financial performance as a "higher degree of uptrend" that THQI would need to demonstrate fundamentally, before its stock could establish a "higher degree of uptrend."
In October, THQI beat estimates (including mine) by 25%, and the stock broke $13 and completed the head-and-shoulders bottoming formation. On Wednesday, February 25, THQI will have shown the Street that it has demonstrated the "higher degree of uptrend" in its operating results, and its stock will execute a significant technical breakout. Unless the Q1 estimates are raised substantially, THQI may beat Q1 estimates by 75% also.
Regarding a stock split, I've no idea. But it might be a good idea to split the stock 3-2 or 2-1.
Todd
p.s. History note-- 3 years and 10 days ago, THQ (TOYH) reverse split 1-15, and moved from the National Market to the Small Cap market. It then proceeded to reach a June 1995 low of $1.50 (or a dime, pre-split). As of Tuesday's close, THQ stock has increased 16-fold in 2.5 years. If the stock reaches $30 tomorrow, that will be a 2000% return in 32 months. Not a bad return for a "risky little small cap" that is getting bigger rather quickly. I remember buying TOYH 2 years ago when its market cap was about $15 million. Now, thanks to share dilution and price appreciation, the market cap is $180 million. Oh, and BTW, THQI will reach an all-time high market cap tomorrow, when it passes ~$26.
TDW |
