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

To: Kory who wrote (11709)	9/29/1999 10:29:00 AM
From: Harry	Respond to of 14266

Hi all, Long time no post. =) Along the lines of Kory's message, I thought I'd take a stab at putting together the case for THQI shorts (disclaimer: I'm long THQI, and have been for the last year and a half). Anyway, here's my short case, for what it's worth: 1) Past history of THQI's price movements. While our general trend is up, we've also had quite some volatility. The high number of shorts could actually be a lot of "rotating" short-term shorts. 2) ERTS and EIDSY's run-ups over the last 6-12 months. Shorts may be anticipating a correction in those two, causing an industry-wide correction. I have trouble with this one, though, because neither EIDSY nor ERTS has that much short interest. Perhaps they choose to short THQI because they think it's a smaller player, so it's safer to short? 3) Transition to next generation of game consoles. Although this transition seems to be going smoothly, traditionally speaking, console generation transitions have caused lots of headaches for video game publishers. 4) Belief that the only way to make money in video games is to have megahits. If one believes this, THQI would be a good candidate to short. They simply don't have the same quantity of megahits that other publishers have (though as many here have pointed out, one of THQI's strengths is that they don't need megahits to profit). 5) Cult-like adoration for Stagger. I'm sure others here can come up with a better short case, but I just thought I'd take a shot and see what I could put together. Barring the existence of an immensely stronger short case, though, I really have a hard time seeing how anyone who knows THQI and its industry could be shorting the stock (staying on the sidelines, yes; shorting, no). =) Harry