Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Raymond James Norris who wrote (13140)	2/9/2000 8:11:00 PM
From: Kelvin Taylor	Respond to of 14266

From the lastest S&P report: The 1999 third quarter was the company's 10th consecutive quarter of record revenues and earnings. In January 2000, following its best holiday selling season, THQI projected record sales and earnings for the 1999 fourth quarter, exceeding expectations. The company also said it believes its 2000 product line will be the strongest in its history. The line-up includes its first online product, first Dreamcast release, as well as launch support of the highly anticipated PlayStation 2. THQI also noted that the best selling WWF WrestleMania 2000, introduced in November 1999, was sold out across the U.S., but would be back on retail shelves in mid-January. In May 1999, THQI acquired Pacific Coast Power and Light Co., a California game developer. Net sales in the nine months ended September 30, 1999, soared 67%, year to year, on 23 new releases, in both domestic and foreign markets. International sales surged nearly threefold, to $45.9 million. Despite higher product development, marketing, and promotional expenses, pretax income also climbed more than threefold. In the past 30 trading days, THQI's shares have declined 17%, compared to a 2% fall in the S&P 500. Average trading volume for the past five days was 396,260 shares, compared with the 40-day moving average of 670,521 shares. Technical Evaluation: BEARISH since 12/99 Rel. Strength Rank: 5 (1 Lowest - 99 Highest)

To: Raymond James Norris who wrote (13140)	2/9/2000 9:04:00 PM
From: Apakhabar	Read Replies (1) \| Respond to of 14266

Hi Raymond. Your analysis is logical but I have a question about whether or not the short position confuses things enough to allow for a "special situation." What does it mean to the long-term trendline that 33% of the float is short and its holders have orchestrated/benefitted from a sharp attack in the media during the past month? If I follow you, your argument would be that the broken trendline is an irrefutable argument, the "real story" that deserves more consideration than anything the company might say, or anything the analysts might predict insofar as future sales go, and that the short interest is irrelevant to or just a by-product of the "real story." I think most here would like to think that the short interest has been responsible in some way for the big decline. What makes your argument distressing to long-term holders is that it seems to say it is not. But mostly I wonder about this: we have this solid, four-year trendline that has been decisively broken. And yet, even today, the stock is up about 30% from where it was two years ago just before the loss of the WCW license, and that price (32 two splits ago) was in an overbought phase. It seems to me that when such an important trendline is broken, the actual stock price out to be lower. Why is it not? What do you say about starting a new trendline beginning at the bottom that was hit shortly after the loss of the WCW license. If you draw that line, it's a little less steep than the four-year line, and it would not yet be broken. I'm just wondering if the loss of the WCW license and the advent of the big short position doesn't justify a "new start," if you will, for the company. Comment?