Okay, okay, I'm selling my Treasuries already to free up some cash.
If there is a 2 basis point spike up in the long bond today, you know
why. By the way, WCW's contribution was really old news (look at my
post #4550, paragraph 5.) Most on the thread expected it really.
From a valuation perspective, THQI is cheaper today than at any other
time in the past three years. From a balance sheet perspective, it is
probably at its strongest. With Game FX, it is a bigger company and
better prepared to generate revenues from PC games. And it has $22
million in cash intact to buy more titles. From a growth perspective,
conservative Farrell expects 20-25% growth in 1999 at a time when the
fundamentals of the industry are very strong. From a forward earnings
perspective, this is one of the few companies in the industry with
predictable earnings for the next 14 months.
To not expect profit taking after a two week run up would not have
been sustainable I think. But the P/E (backward, forward, sideways)
suggests that this is an other opportunity to buy (this is not a buy
call to short-term traders.) I think today's selloff is healthy: the
average cost base of THQI holders is much higher today than yesterday.
And more than 1.6 million shares have traded from 6.9 million shares
outstanding.
With Dim Sum,
Bleeker |
