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Technology Stocks : THQ,Inc. (THQI)

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To: Kelvin Taylor who wrote (10618)4/22/1999 8:20:00 PM
From: Marc Newman  Read Replies (1) of 14266
 
Kelvin, I'll try to make another post tonight but for now think about a couple of things.

1. Considering the past history of how this stock acts after most earnings reports, closing up on the day was huge. And the last bid I saw was 24 5/16 so even though the last trade went through at 24, we effectively closed up 13/16 on the day. The longs will see that extra 5/16 in their buying power and the shorts will be out that much more money.

2. The trading at the end of the day was funny. It's almost like there was one seller with some size and everyone stepped away to make them be forced to sell down a point. The bid and ask sizes got strange, the spread was all over the place, etc. during this time. And look how the second the last trade went through the bid jumped 5/16. While nothing that happens tomorrow will surprise me, I will be especially unsurprised if we go up $1+ tomorrow.

3. My favorite two quarters of this year are coming up. The comparables are easy and the lineup looks sweet. WCW blowout plus Rugrats international releases and domestic RR GBC and Knights of Carnage sound as good as last year's Q2 even before factoring in Rugrats N64 (huge) and no GameFX charge. Q3 last year was a joke at .21. I look for serious growth on that front setting us up for a great Christmas.

4. Farrell is starting to give more realistic guidance and that should bring in more support from institutions. They can now point to the 25-35% growth, etc.

Good luck with what you decide to do, but I'd want to be in at least through E3. THQ could have a big surprise or the whole industry might get a surge if console prices get lowered to $99. Also, take a look at the chart around E3 in 1997. THQ got quite a rise that year between earnings and the end of the show. Last year of course we were still suffering under the WCW loss and thus under pressure.

Marc

P.S.--forget this thousand share club, I want to know who else besides me bought at least a thousand additional shares in the last two days. <<G>>
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