From Indiv. Investor Online:
JONO's BULLSEYE: THQ is Ready to Rise
By Jono Steinberg
Shares of THQ, a leading publisher and distributor of interactive entertainment software, have been on a tear over the last few weeks, fueled by enthusiasm over the historically strong Christmas selling season. Today, the company announced that its hit game, WCW Nitro, will begin shipping for PC systems. This is a huge positive for THQ. It shows their ability to make content available on multiple hardware platforms. Despite the good news, shares drifted down to close $1.31.
Additionally, late last week the company announced a redesigned web site where titles can be viewed and ordered, marking THQ's first foray into e-commerce. While it is difficult to quantify the impact of this venture on the company's bottom line, it is a positive.
Finally, THQI announced it will begin shipping a Game Boy title based on the number one rated children's television show, Rugrats. The game will ship for Christmas.
After earning $0.90 per share last year on sales of $89 million, analysts expect the company to earn $1.65 this year and $1.98 per share in 1999. At a recent $28, the shares trade for just 14 times next year's earnings. THQ has long been a favorite stock of ours and is timely for investors following these strong announcements. |
