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Technology Stocks : THQ,Inc. (THQI)

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To: Jim Munroe who wrote (9793)3/29/1999 11:24:00 AM
From: Jim Munroe  Read Replies (2) of 14266
 
WSJE Article on Eidos

The Wall Street Journal Europe, Fri-Sat Mar 26-27 (p.16), in the section on European and Emerging Markets, has a very positive article on Eidos. It begins with the shares tripling in the last six months and "analysts predict the ride isn't over yet".

>>...finally captured the attention of international investors, sparking a strong correction for its stock after years of being fundamentally mispriced in relation to its US and European Peers<<

>>The company's shares currently trade at a price/earnings ratio of around 14 while its US counterparts merit ratios of up to 45 times<<

In what could be a suggestion for THQ management:

>> ...the company has just completed a big investor-marketing program spanning the US, the UK and Europe. "A lot of people don't know the company but want to invest in the sector. New institutions are bringing fresh money and there aren't many sellers"<<

A difference from THQ is the identification with a strong franchise:

>>The attitude shift can partly be attributed to the publicity generated by games such as Tomb Raiders, whose well known heroine Lara Croft has attracted a global fan-base and made the series a best-seller"<<

Another hint for THQ management is:
>>...there has been a string of positive news from the company in recent months. In January, Eidos said it expected profit for the year ending March 31 to significantly surpass market expectations...<<

>>Last month the company announced a tie-up...to provide Eidos customers with free internet connection<<
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