THQ,Inc. (THQI) Message Board

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Technology Stocks : THQ,Inc. (THQI)

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To: David Haines who wrote (5752)	6/4/1998 12:26:00 AM
From: StaggerLee	Read Replies (2) of 14266

Sorry, I thought WCW debuted in Q3. In any event, in 1998 you're paying about $90 million more for THQ (based on current mkt cap vs. year ago) for an extra $5.4 of non-WCW revenues this quarter. Annualized, it means you're paying about 4 times incremental revenues for a company that almost never trades over 2 times sales. If you value these "new" revenues (on an annualized basis) at the current price to sales ratio of 1.23, that equals about $27 million of value. Add that to last year's market cap of $72 million, and it gives you a current value of THQ of about $99 million, or $13.75. Now reduce it by a little because last year's market cap didn't contemplate the sudden end of WCW. When the market realizes this you'll be lucky to get $12. No reason to be so cranky, Game Boy. It's not like you lost $50 grand this week. Oops, maybe you did....

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