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

To: MikeD who wrote (12868)	1/28/2000 12:50:00 PM
From: Kory	Respond to of 14266

Here is the total amount of reserves (domestic + foreign) for the past four quarters: 12/98 - $18,898,000 03/99 - $19,567,000 06/99 - $21,176,000 09/99 - $20,125,000 So I guess we did decline, maybe Herb is right after all. Almost as good as Clintons speech last night when he stated that accidental child death by guns were 9 times greater in the US last year than in the 25 industrialized countries combined. My guess is that the US probably had 9, or maybe 18, while the rest of the world reported 1 or 2. Anyone have the actual numbers instead of ratios? Lies, damned lies, and statistics. Kory

To: MikeD who wrote (12868)	1/28/2000 1:05:00 PM
From: NeverRight	Respond to of 14266

It's funny how the tone of written messages can change meaning. For example: HERB GREENBERG WRITES THAT THQI WILL PROBABLY BE THE ONLY COMPANY IN THE INDUSTRY TO BEAT ESTIMATES. Very Positive Reserves for returns and price discounts are finally getting down to industry averages as revenue and receivables increase exponentially year to year. Very Positive Although, THQI has software development costs on the balance sheet, unlike it's peers it has no long term debt or Goodwill.

To: MikeD who wrote (12868)	1/28/2000 1:08:00 PM
From: Zirdu	Read Replies (3) \| Respond to of 14266

Why is it necessarily bad if reserves are falling and capitalized development costs are rising? Isn't it true that if the reserve number used by THQ accurately, properly and fairly estimates actual sell through, then a falling reserve would mean that the games out there are selling through better quarter over quarter? So isn't the idea that "falling reserves = trouble ahead for THQ", dependent on THQ management cooking the books, and improperly using reserves? Second, why is it bad if "capitalized development costs are rising?" Wouldn't that be a sign that the company is developing more titles? Wouldn't you expect a growing company to be developing more and more titles, and so (assuming they capitalize software development costs)incurring more and more "capitalized development costs?" I don't understand the basic accusation Greenberg and the shorts makes against THQ here. Someone help me out.

To: MikeD who wrote (12868)	1/28/2000 2:24:00 PM
From: Emmo	Read Replies (1) \| Respond to of 14266

""The point is that THQ sticks out like a sore thumb in its industry...and industry that is currently going through turmoil."" Actually I think Herb's motives stick out like a sore thumb. But I wouldn't waste too much time on the guy. He keeps his job as long as he pushes peoples button and gets lots of "fan mail". That way he can show that people are reading his column. If emails stopped then he would wilt like corn in a drought. Anyway, his argument ignores the obvious, games are the same as movie biz, a studio will get hot and have a string of hits. The former big dog will spend lots of cash and release a big flop (can you spell Godzilla?) Let's see, ERTS numbers were downgraded because "Analysts lowered estimates during the quarter in part on concern about sluggish sales of games such as ``WCW Mayhem' for Nintendo Co.'s N64." Which leads to the assumption that N64 sales are dying. But the truth is WCW Mayhem is a bomb. (recent visit to Kmart I saw a row of Mayhem games so deep I couldn't count them all). N64 game sales are great for THQ because they have a hot game. But according to the "expert" Herb that can't be, THQ has to be cooking the books, it's not fair the hot selling titles belong to THQ. Something has to be wrong. Well, sorry folks but in the game biz, if you make a good game they will buy and that's what REALLY counts. I think Herb ought to worry if ERTS has enough reserves for Mayhem returns!

To: MikeD who wrote (12868)	1/28/2000 3:14:00 PM
From: James Hutton	Read Replies (2) \| Respond to of 14266

I think Greenberg is still wrong re the accounting issues, but I'm admittedly not even close to being an accounting expert. However, his conclusion that all companies in the same industry must fail is superficial to say the least. There is nothing wrong with being concerned if one or more companies in the same business as THQI has a bad quarter or so. However, I went through the same thing with CHKP last Q1. One by one, all of the software security companies came out and said Y2K problems would hit earnings. NETA, AXNT, ISSX, etc. all crashed, and CHKP went down with it, despite assurances from management that its business was fine. In general CHKP overcame the funk that infected the other companies because it had a different business model. So, a company like THQI that may have a different approach (and better products) can in fact thrive in the face of an industry wide slump. The shorts just seem to say, you can't thrive because you have a different business model or better products, but you can only thrive because your cooking the books. I guess time will tell. Good luck.