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Technology Stocks : THQ,Inc. (THQI)

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To: Kory who wrote (8558)11/13/1998 6:52:00 PM
From: David Howe  Read Replies (1) of 14266
 
THQI and JAKK split both the costs and revenue. Each has an equal risk / reward on the partnership.

JAKK had the WWF license and contract with Titan, that's why they got in on the deal in the first place.

JAKK has consistently increased earnings for the past 10 quarters. They just earned $.45 for last quarter and are on track to earn $.85 for the year. At 10 per share, the PE is cheap at 12.

Without the THQI partnership, JAKK is estimated to grow another 35% next year. Add the THQI partnership (50% of WWF video game earnings) and you have a very cheap stock.

FYI

I am a THQI and JAKK shareholder. THQI has momentum and further upside for at least the next year. JAKK is very very undervalued, but hasn't been able to gather any momentum. IMO, it will outperform THQI, it's just a matter of when the run begins.

I'm looking for the WCW earnings because it will help determine JAKK's earnings outlook. My best guess at this time is that the WWF / THQI deal alone will boost JAKK earnings by 60 - 70 %

JAKK revenue comes from -> WWF Action Figures, Die-cast vehicles, Child Learning Toys and Dolls. Next year they add BASS Fishing toys, a partnership with Pedersen Publishing to advertise collectible vehicles and the THQI / WWF deal.

Sorry about the sales pitch,

Dave
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