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

To: Larry Brubaker who wrote (11708)	9/29/1999 9:05:00 AM
From: Kory	Read Replies (1) \| Respond to of 14266

Question for the board: Although I don't get too concerned one way or other about short sellers, it is interesting to try to figure out the investment strategy that has 1/3 of THQ shares shorted. Seems difficult for me to believe that someone would short that kind of dollar value, focused at one particular stock, except in exceptional cases. More likely to me seems a strategy of shorting the entire entertainment gaming sector, based on a traditional boom-bust cycle. Now, I am not predicting that a bust will definitely happen, but it seems to me a more plausible strategy than someone discovering something so wrong with THQ to short it to this extent, especially when there has been so little covering even when the stock was drifting down to little more than cash levels (i.e. $10/share). Also, seems to me that AKLM and other gaming companies stocks are heavily shorted as well. Is is likely that a significant fund or individual is using weighted shorting on the entire entertainment software industry, possibly adjusting weights on particular stocks based on computer driven formulas? (i.e. judges that the entire sector is overvalued based on some perceived outlook, and shorts a market basket of stocks, not caring who the winners and losers are, but believing in the end, there will be more losers than winners.) If so, the actual performance of THQ stock may be somewhat irrelevant to the shorter, as they are looking at a consolidated return of a basket of shorts. Not that that strategy looks all that good right now with ERTS and other gaming stock prices booming as well, but was wondering if the more astute market watchers believe this is plausible strategy. Kory