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

To: Zirdu who wrote (12871)	1/28/2000 1:23:00 PM
From: Henry Hayashi	Respond to of 14266

>>I don't understand the basic accusation Greenberg and the shorts makes against THQ here. Someone help me out.<< Trust me, they don't understand it either. It's the same backwards thinking of the shorts last year in regards to WCW. According to them, it was horrendous for THQ to have a monster hit and generate huge revenues from one title. This year it's going to be deemed bad that they have only four or five franchise hits that are driving the bulk of their income. Your thinking is not flawed--theirs is. BTW, their ticker symbol gives them away: TSCM--The SCaM Regards.

To: Zirdu who wrote (12871)	1/28/2000 1:44:00 PM
From: AreWeThereYet	Read Replies (1) \| Respond to of 14266

If you understand, you will be on their side and making dirty money already. The reason is simply, the shorts have deep pocket and lots of blind followers. They believe the industry is going to down cycle. They can say whatever they want, insider trading, reserve, in-house develop titles doesn't sell, tons of Sinistar and Ultimate 8 on the shelves... Only two thing can squeeze the shorts: 1) take-over rumor, yes rumor is all you need. 2) aggressive buy back or insider buyings. Isn't that amazing? AKLM officially reported poor earning. THQI officially announced outstanding quarter. Both down 30% . TA rules, FA sucks. Andy

To: Zirdu who wrote (12871)	1/28/2000 3:19:00 PM
From: wolfdog2	Read Replies (1) \| Respond to of 14266

Ranney, it's considered more conservative to expense R&D rather than carry it as asset. If you expense R&D it lowers your earnings and the quality is better, so to speak. The other side of the coin is that by expensing all R&D up front, you don't fairly match revenues and expenses. In fact what you do is inflate future earnings, which is what all the hullabaloo about companies taking massive write-offs is all about. In THQ's case, I think they only capitalize R&D for games that are actually going to ship. If they've been puttering around on the drawing board and draw a blank, I'm fairly certain that they simply expense it and close the book on it.