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Technology Stocks : THQ,Inc. (THQI)

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To: charles moore who wrote (3964)3/12/1998 4:25:00 PM
From: Trippi  Read Replies (2) of 14266
 
Charles your post made no sense to me -- If this, and If that.... and should mean this etc. No all earnings are not equal and math is math but it kind of depends on what PE you put in the equation.

Put in any PE you want -- the only one that matters is the one the market will pay.

My guess is 2X WCW related earnings
25X non-WCW related earnings

2x .53 = $1.06
25x .82=$20.50 total = $21.56 on $1.35 trailing earnings

(we closed today at $21 3/16 I believe)

Assuming $1.80 for fy98 and WCW related earnings representing 29% of total fy98 earnings -- you get a year end target of:

2X .52 = $1.04
25X $1.28 = $32 end of fy98 target $33

The hardest part of the fy98 equation will be to have WCW represent just 29% of earnings.

You can fault my math all you want -- I am long THQ -- have been since I bought in the 7's -- but this is how I think the market will value THQ until we get WCW off the books.

Trippi
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