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Technology Stocks : THQ,Inc. (THQI) -- Ignore unavailable to you. Want to Upgrade?

To: AreWeThereYet who wrote (11033)	6/16/1999 12:34:00 AM
From: Wildman262	Read Replies (3) \| Respond to of 14266

We are very lucky to have EXCELLENT management at THQ. Those that bought THQ at higher prices, will eventually be in the black. I feel very confident that THQ is doing everything possible to increase shareholder value. Sometimes stocks and sectors are out of favor and despite everything the company does, the stock remains undervalued. If you read Peter Lynch or Buffett, these guys have the patience to wait for their stocks to turn around without finding fault with managment. In my opinion, THQ is doing an excellent job. I attended the US Bancorp/Piper Jaffray conference this morning. This conference had almost 300 companies presenting over a period of 3 days. The conference was for institutional shareholders and individual shareholders that can talk their way into a badge (g). There were about 25 institutional managers in attendance (including Matt Gikas, Piper's THQ analyst) for THQ's presentation, which was about average. ( I also attended ATVI and IPLY. There was also a writer from Investors Business Daily taking notes. I wanted to attend AKLM and ERTS, but missed them.) Brian had 40 minutes (same as all presenters) and did a very nice job. I did not attend the annual meeting, but based on the notes I have read from Jan and TSeltzer, todays presentation was probably similar. My Notes: 1) THQ products reach mass market 2) Pleased with the COMPLETION of Sinistar for a 3rd quarter release. Farrell believes 3d accerleration is key to the future and gameFX is a critical technology for the future. MY COMMENTS: this will be important for the New Generation of Sony, Dreamcast and Nintendo Dolphin(their code name) 3)For 1998, THQ was #4 on Nintendo, #8 on PS and #1 on GB and was the ONLY publisher in the top 10 for each of these platfoms. 4)1st qtr 1999, #3 for PS and #5 for Nintendo 5) THQ has one best fighting game 2 years running for WCW and Devils Dice won best puzzle and multiplayer game. 6) THQ"s franchise brands: WWF, MTV Extreme Sports, BAss Fishing, Brunswick, PRCA Rodeo, Rick Carmichael MotoCross, Rugrats, Destruction Derby. 7) WWF and Rugrats DOMINATE the latest Neilsen rankings and it is POSSIBLE that 1/2 a slice of WWF could do almost as well as a full slice of WCW. THQ has the wrestling engines (the award winners) that can be used for WWF. 8) Key products: 2nd quarter: Rugrats Scavanger Hunt Star Wars X wing alliance 3rd qtr. Road Rash Sinistar Ricky Carmichael 4th qtr. WWF Rugrats Indiana Jones Toy Story 2 Road Rash called best racing game of E3 according to ? ( I missed the name of the writer/magazine) 9) Farrrell believes THQ has the broadest and DEEPEST line up ever. Pacific Power and Light: -Has ability to create high end products -Currently working on Road Rash, Nuclear Strike and Jet Motto for Sony -Pooling of interests transaction that will be written off in 2nd qtr at 3-5cents per share. International: Competition gets about 45% of their sales from internation and THQ currently in mid-teens. THQ needed to get US on the right track before getting aggressive internationally. International sales will continue to go up and THQ is increasing their International ONLY titles. One title mentioned was Michael Owen Soccer. (Owen is a teenage phenom from England and is a MEGA star in Europe) Recap: -THQ is outperforming all competitors financially -US market is about 6billion, world about 10 billion -THQ has a large library of titles, significant relationships,3d acceleration, leading 3rd party developer and ability to manage risks. -17 consecutive positive earnings comparisons. (soon to be 18, 19 and 20) I spoke briefly with Farrell about an hour after the presentation. I really believe THQ is doing EVERYTHING in their power to build shareholder value. Farrell had an annual meeting yesterday, directors meeting yesterday, Piper party last night and was on first thing this morning promoting THQ in Minneapolis. I think Farrell and THQ are doing a great job and I told him so and that I was glad to be a shareholder. THQ has had several products over the recent years that have dominated their sales. In years past it was Bass, Olympics and WCW. It is simply the nature of the business. THQ's/game industry business is not too much different than the movie business which must replace last years hits with new titles. It is simply the nature of the business. Farrell said that he is very comfortable with analyst numbers for the 3rd quarter. ( 3rd quarter will not have wrestling) If investors have patience, I feel confident you will be rewarded. THQ is rock solid financially, with terrific products, management, industry respect and contacts. Wildman262