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Technology Stocks : THQ,Inc. (THQI)

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To: vc21 who wrote (6207)6/20/1998 10:20:00 AM
From: Sigmund  Read Replies (3) of 14266
 
Will people be looking at bottom line earnings after charges or paying more attention to revenue growth, non-WCW revenues, and gross margins? I would think the latter. A very aggressive write up this quarter would mean no more later and that also would be seen as positive. Perhaps I have this wrong but I don't see a lot of risk from exceptional entries.

As far as PE goes, weighting by market cap does seem more reasonable than an arithmetic average. The industry growth rate would be weighted obviously by revenues.

I am not sure that the industry PE is particularly relevant. THQI's PE prior to the WCW fiasco may be more to the point. THQI probably should command a PE similar to what it enjoyed before it lost the WCW license. The WWF license may not be considered as valuable mainly because it is only half a loaf. But with all the other positives, I wouldn't think that THQI's PE will remain much below what it enjoyed in the past.
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