THQ,Inc. (THQI) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : THQ,Inc. (THQI)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Mr. Aloha who wrote (4747)	4/21/1998 8:34:00 PM
From: Bleeker	Read Replies (1) of 14266

Regardless of my 39 cents expectations, just for the sake of argument, let's take the low end of the analyst forecast: around 32 cents, right? Now add that to the most recent three quarters and we end up with a P/E of 19.3. That is a VERY DEEP discount to the conservative P/E average of 23 that both Wedbush Morgan & Volpe Brown use for this sector (forget the high 20 P/Es for the broader market or the sector that we have used in the past.) 32 cents gives you EPS of $1.55. So even if THQI failed to meet the estimate--which I am not suggesting here--by four cents it would need to trade up to $35-36 to attain a P/E of 23. In my opinion, that is still too low of a P/E considering THQI's acquisition of Game FX, but I am trying to show the negative scenario if THQI failed to beat estimates. Is that possible? Again I am playing devil's advocate here but remember that estimates have already been raised to 36 cents from the high 20s. Perhaps estimates were raised to aggressivelyto 36 cents. Just another perspective. Bleeker

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next