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Technology Stocks : THQ,Inc. (THQI)

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To: Sigmund who wrote (3891)3/12/1998 3:31:00 AM
From: Sword  Read Replies (1) of 14266
 
>>But I agree that WCW product sales represent a mixed blessing now. They will be treated more or less like revenues from a discontinued operation. You can take these revenues and the resulting earnings and net present value them. They then will be valued to some extent as a one time profit on the sale of an asset. I don't think the success of these products will drive the price of the stock very much at this point in time. More attention will be paid to revenues from other products and future product plans. <<

I agree. The Street has discounted future earnings from this product line as a one time sale. This leaves us with the large predicted sales of Rugrats and Quest in '99 which will replace WCW as the major titles. In the meantime the street is treating this event as a step backwards in the company's attempt at expanding its strong product line.

I'm not good at predicting prices but think that we might drop to the 200 DMA until later in the year. That would be $17. Ouch!

-Jerry
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