Aaron,
Let me be the first to respond to this post after such an extended period of time. I thought it would be interesting to hear the current point of view from II as it has been over a year since you made this post. Few would rebut the fact that THQ has accounted for itself very well over this timeframe and although I still believe the stock price is too low, there are many who differ, which is supported by the current short position reported for THQ.
The main reason I bothered to dig up this old post is the recent statement by Mr. Steinberg that THQ is poised to make some large gains. This in light of the announcement last year that II and associated funds would not be making comments on certain stocks, THQ being one of them, due to a perceived conflict of interest due to fund ownership such as the position held by Wisdom Tree at that time. I have concluded in my own mind that Wisdom Tree no longer holds a position in THQ or that II has changed its policy. My conclusions are based on Mr. Steinberg's current willingness to make public statements regarding THQ.
I would like for you to reassess (I would also like to hear Todd Wiener's view as well) your fifth point because I have always considered THQ's accounting practices to be fairly conservative and in rereading the post was surprised to see that if the software costs were expensed as they should be, the earnings would be substantially lower. Of course if this is still true, I would like to know what substantially means as an impact on earnings, say on a percentage basis.
Regarding your eighth point, I liked the beta site when it was first offered. I was continually frustrated by the slow response inherent in the site. Furthermore, the releases by II were way late in regard to the market action, often several weeks. Therefore, I quit visiting the site all together over six months ago. I recently revisited briefly when the Steinberg THQ forecast was mentioned on this thread. I found navigation slow again at that time, but I still plan to spend some time trying to move around over there again. Will I be happy?
I fully understand your statement that II rarely responds to reader and shareholder concerns outside of the magazine or update, but as you responded here before, I thought perhaps you would be willing to do so again. Earnings will be out in the morning, and by all means, please review them prior to responding. I'm more interested in a fair assessment of what is going on with the stock for the coming months than a rehash of past events.
Thanks in advance for taking the time to address this board.
Don Carlson |
