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

To: Dave Hanson who wrote (13158)	2/10/2000 12:51:00 AM
From: Mr. Aloha	Respond to of 14266

Here's the only chart I need right now. quote.yahoo.com You see that orange line? When that orange line crosses the green line, we're moving up already. We trade +/- a few points sideways until they meet. I'd say about 5-10 days or until earnings. The line is still up and earnings are still growing approx. 20%. That will ALWAYS determine chart direction. Take the end of the chart and move it up a little after the line crosses and then flatten it for a month or two while we base. At the end of the year, stretch it up to about $44-55+

To: Dave Hanson who wrote (13158)	2/10/2000 12:59:00 AM
From: Raymond James Norris	Read Replies (1) \| Respond to of 14266

Dave, It's nice to hear from you too. Hope all is well. First, does your own research suggest that long-term trend lines are as reliable for companies with this sized market cap as for the bigger players (where large institutions play a bigger role?) I would be more cautious on stocks with average volume below 100,000 or shares outstanding less than 5 million. But THQI is liquid and there isn't much room for manipulation which could cause erroneous signals. I think the indication from the chart is just as valid for THQI as it would be if it occurred on some large cap. Second, what, in your judgement, would serve as a re-establishment of the uptrend...or is it irretreivably broken? From here THQI could take many paths: 1. trade in a range. It would need to establish a support level but it may trade between two levels after the break of an uptrend 2. Begin a downtrend. Sometimes stocks begin downtrends after breaking an uptrend line. The strong volume and undercutting of January's lows makes me believe this the most likely scenario 3. An uptrend: This could happen 2 ways. Either THQI would base and begin a new uptrend at a slower pace than the previous (i.e. bulls are still in control but not as strong as before). Or, THQI could rally strongly back above its uptrend line and break above it. This is unlikely because yesterday's rally attempted that. The 200 day moving average has yet to turn negative but is likely to soon. The short term moving averages are all negative and are crossing below the 200 day moving average. The previous breaks were not closing breaks. They traded below the trendline briefly but recovered back above it the same week. THQI has closed one week already below it and will likely do it again this week (and the volume!! 4 million shares traded and the stock fell). Third, what makes you think that the THQI insider sales late last year were unusual? They were hardly unprecedented during the uptrend, and did not seem out of line to me. The sells were significant during November. Take a look at this site: biz.yahoo.com I'm sure you've seen it before. But notice how many sells by how many different people occurred during October and November of 1999. Three quarters of that page of insider transactions occurred in October and November of 1999 (and it covers 2 years). And as luck would have it, they were all at the highs of the stock. That has to make you suspicious. Ultimately the decision is up to you. My previous calls were all short term oriented; I always ended with a note that the long term trend was in tact. Now that that has been called into question, buying or holding for the long term, in my opinion, entails much higher risk than one might think. Conservatively Yours, Raymond J. Norris