Kudos to Kory and MHO on the CC
Kory, let me publicly say how much I appreciate your perspective on this thread. I never guessed till checking your profile that you were only around my age--your patience and discipline had me thinking you'd been through a lot more market cycles than you obviously have. Such a refreshing change from the tone of so many SI and yahoo posts. (Now you just gotta buy some of the micro caps I plugged in answer to your post a while back, so that I can benefit from your thinking and accounting expertise on those too.) ;o)
On the CC: it sure seemed good to me. Aside from Todd's remarks, I would stress the following. BF made clear that because the company was awash in cash, he did not see any need for additional financing in the forseeable future. This, combined with sell-through of rugrats, scheduled new title releases, the locking up of the rugrats and WWF franchises, his own guidence about future earnings (again see Todd below,) their having taking action already to write off failed titles, and his obvious confidence in the titles under development suggests that there will be no nasty surprises and lots of potential upside in the near-mid term future. One THQ shows it can deliver solid growth in a post-WCW world--and I am very confident it will--they'll be no bugaboos left to keep prices this depressed.
Today's action, IMHO, is frustration by folks who saw or suspected a huge earnings surprise and thought they'd be rewarded with a big pop. In the coming weeks and months, the patient, smart $ will not be able to resist the value they're getting, and we'll see better days. (That may be happening already--look at the huge share turnover today.)
In the meantime, look at the bargain we have. If I wasn't already so overweighted in this company, I would certainly buy more at these levels.
FWIW |
