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Technology Stocks : THQ,Inc. (THQI)

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To: Craig Markell who wrote (4675)4/20/1998 11:05:00 AM
From: StaggerLee  Read Replies (3) of 14266
 
The $600,000 cash surprises me. The deal was over 90% stock; another 25,000 shares and they could have pooled and avoided a goodwill drag on earnings for the next 15 years or so.

Now all they've got is more outstanding shares, more R&D, higher P/E, and higher price/book. Look for downward revisions by about 5% or so for 1998. It will take many years for this acquisition to manifest itself into earnings. Of course, there's nothing wrong with that.
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