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Technology Stocks : THQ,Inc. (THQI)

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To: Marc Newman who wrote (6921)7/20/1998 9:15:00 AM
From: Joe Casey  Read Replies (2) of 14266
 
Beating earnings estimates by an outrageous margin may not be as wise as people think. THQ made fools out of the analysts the last two quarters and saw its shares slide down twice as a result. This implies that THQ does not know how to manage its analysts (another example is CHKPF). It might be better to beat the 19 cents consensus estimate by a reasonable margin and include bullish comments in the CC about continuing 25-30% growth or more. I believe the most important consequences for the stock are to please the analysts (and bring in new analysts) and have no hints of pessimism in the CC.
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