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Technology Stocks : THQ,Inc. (THQI)

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To: leisuresports who wrote (9878)2/25/1999 11:06:00 AM
From: wolfdog2  Read Replies (2) of 14266
 
Growth rate. The bottom line growth rate is clearly going to decrease. Brian said to calculate the growth rate for 1999, the 1998 earnings should be adjusted to take out, I believe, the NOL and the FSX write down, which would make earnings ~$1.75. The 20% increase for next year would then be from that base. Hmm. We reduce 1998 earnings so we can come up with a 20% growth rate. Hey, that's pretty good.

If THQ's price reflected its growth rate, I suspect that Brian's statement would mean real trouble. But at a p/e of ~12, no growth was built into the stock, so it shouldn't do much to the price, imo.
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