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

To: RealMuLan who wrote (13782)	4/18/2000 7:04:00 PM
From: Jeff Lins	Respond to of 14266

Hey, isn't anybody worried about ERTS and wrestling? They learn fast and have resources to make high quality games...and lets face it, withough huge wrestling sales, the company changes complexion fast... WWF will do well in the current market (in any market), but who wants bass fishing/bowling etc? Buying used games impacts things a bit as well... As for our online strategy, how well do we think a wrestling card game is going to do? I am very long THQI....

To: RealMuLan who wrote (13782)	4/18/2000 7:56:00 PM
From: OGM	Read Replies (2) \| Respond to of 14266

"ROE of 39%, where does that come from? Unless someone bought this "value play" before the end of 1997, or during the big drop in Aug-early Oct. 1998, their return on equity for the last 2 years and four months is actually negative. And I, for sure, am not among that lucky few. I wonder how many are. " ROE is a financial term that comes from the company's latest 10-Q. It is the return (net income) on a company's equity capital (assets minus liabilities). It has nothing to do with stock price. I got 39% from Microsoft Investor, which gets the content from Zacks. A company that has a high ROE does not have to invest as much to achieve a higher net income line (assuming low debt). This is the kind of company value investors look for, particularly when the price is low (P/E is a good starting point for this). Thus, a high ROE (THQI = 39%) and a low P/E (THQI=9) is a desirable state of affairs for a purchase, provided the fundamentals of the business (not necessarily the stock market) are sound, the company has able and competent managers, etc. This is not about luck. It's about a fundamentally sound company with a stock price beaten down below intrinsic value. I wish there were more such opportunities. Happy investing, OGM