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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (9653)	1/15/2000 1:06:00 AM
From: Michael Burry	Read Replies (1) \| Respond to of 78676

I know THQI well. I've been following it and almost buying for a while now. Nothing knew to this thread either, I think. Midway did well for me. I took the easy money and am out. To hold now wouldn't be my thing. I only brought up the internets because when one mentions high ROE's currently, one inadvertently brings up the issue of barriers to entry, which brings up the issue of the internets. Mike

To: Madharry who wrote (9653)	1/15/2000 2:09:00 AM
From: jeffbas	Read Replies (1) \| Respond to of 78676

Armin, this idea is not original with me, but I have heard these video game software companies referred to as sort of like movie companies. I think this is not a ridiculous comparison and my recollection is that when there were several publicly trading movie companies they did not carry especially high P/E's -- because they had event risk - a series of flops and there go earnings, as MWY sort of had for a while. I would also add that I think the game console paradigm for the industry has more risk of shifting somewhere else, like the PC or the Internet, than 10 years ago when there were no potential alternatives. This might or might not have some impact on the valuation - sort of like laser surgery is not good for the valuation of solidly growing contact lens company COO, even though it has minimal actual impact on their business.