I'm not worried, and I suppose I could be considered an "old-time faithful." And I'm not trading. I would be buying, but THQI is, and has been, a substantial portion of my portfolio, and there are too many better values in the toy store (TMAX, ZNDTY, RACN, DSIT).
We need to be PATIENT. It's quite possible that in 2 years, THQI will have a market cap of $1 billion. If so, the mid-cap funds will start buying. Of course, ERTS may buy first.
The only wildcard in the Q4 report is the effect of Rushware. I don't know how to figure that into revenues. I assume that Rushware had $25 million in revenues in 1998, and that it was profitable, and therefore accretive to THQI's EPS. None of my estimates include the effect of Rushware. Not including Rushware, I think THQI could reach $300 million in revenues in 1999. If the JAKK venture and Rushware do well in 1999, THQI will have a shot at $3.00 in EPS. That's aggressive, but possible.
I'm eager to see Q4 results.
Todd |
