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

To: Kelvin Taylor who wrote (11050)	6/19/1999 2:20:00 AM
From: Todd D. Wiener	Read Replies (1) \| Respond to of 14266

Check out this article: Message 10170236 It talks about video game stocks, ATVI specifically, and how they are undervalued (except for ERTS). ATVI does look really cheap. What strikes me is the comment by Piper Jaffray that they don't expect game sales to really take off until 2003, after the new game consoles have taken hold. If this is what analysts are telling people, it's no wonder that THQI and others are undervalued. And they'll probably be that way for another 2 years or so, based on the anticipated (but overhyped) slowdown in games sales next year and beyond. I could see a single-digit growth in 2000 for the industry, but I would expect mid-teens growth rate in 2001 and 20-40% annual growth for 2002-2005. Of course, THQI should be able to significantly exceed these figures. The problem is that investors are buying only ERTS, due to its leadership position, and that's why its P/E is so much higher. And even ERTS has been a lousy investment. This industry needs more consolidation, like a tie-up between several of the first and second tier U.S. companies, such as AKLM, ATVI, THQI, MWY. If the number of leading companies in the industry were to decrease by half, the companies would get a lot more support from Wall Street. Two reasons for this are: 1) greater size in market cap and revenues, and 2) fewer companies to choose from. Besides, someone needs to give ERTS a run for its money. I think that ATVI can do well by itself, but AKLM and MWY are going to hook up with someone in the next year. THQI may hook up with a company from outside the IE software industry (such as a toy company or a media company). Here's a thought... It used to cost a penny for your thoughts. But now, when you give others your two cents worth, do you expect change? Or is this more evidence of inflation? Seriously, though, when people say "a penny for your thoughts..." they are suggesting a suitable price to pay you to speak your mind. But when you offer your views unsolicited, you say "let me give you my two cents worth." This is a perfect example of THQI's problem. We all think it's worth twice as much as others are willing to pay. It's a good thing that market makers don't mediate discussion groups, or else they'd try to profit from the spread. Just my 2¢, er...whatever. Todd

To: Kelvin Taylor who wrote (11050)	6/19/1999 6:22:00 AM
From: Kory	Read Replies (1) \| Respond to of 14266

<Which was a better investment? You decide. Having some money in the nets stocks can't hurt and may just make you a pretty penny.> I beg to differ. Having money in ANY stock can hurt if you don't realize what you are doing. Just because your stock went up more in the last 6 months, or last couple years for that matter, does not mean that will continue forever, or that it was a better investment. What it means is that you were a good market timer or lucky gambler. You obviously know this when you use words such as bet, speculator, etc. The race is long. Believe if you will the market commentators that claim that valuation has become irrelavent and the current crop of Internet stocks will be the next industrial leaders of the world. Meanwhile I will invest for the long term in well managed companies such as THQ. We'll get together in 10 years and see who is better off. Off to see the 3rd round of the U.S. Open. John Daly, who admitted he lost $51 million betting in the early 90's, looked like a pretty good bet on Thursday when he shot 2 under. Unfortunately he won't be playing today after missing the cut with a horrible round Friday. Such is the life of a gambler, Kory