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

To: OGM who wrote (13785)	4/18/2000 10:25:00 PM
From: Apakhabar	Read Replies (1) \| Respond to of 14266

Congratulations. You get the prize for most perverted use of the long-term philosophy. When THQ dropped from 39 to its 200 dma at 23, that was unfortunate, but it may well have been a great buying opportunity. When it fell below 15 as a result of lowered guidance (to say nothing of the sneaky manner in which this was given), talk about ROE is pretty thin gruel. Personally, I think THQI will be significantly higher this fall. It might flounder for a few months, it might go down to 12, but in the fall it will at least have one big rally to at least 30. That's how it trades. It will be interesting to see how many "long-term" holders use this fall as their opportunity to cash out. The beauty of long-term investing as practiced by Buffett is that he holds LARGE companies that grow consistantly; these stocks decline with the overall market, not because they have questions about them that cause 33% of the float to be shorted. Buffett never bought any small-cap companies that derive their profits from products that have a well-known limited shelf-life. Buffett hates risk; his aversion to tech stocks is infamous. Buffett is well-known to have said that when you buy a stock you should hope it declines by 20%, because if you've done your homework, you'll just have an even greater buying opportunity. Please note that Buffett did not say you should hope your investment declines by 40-60% which is what Yiwu is pointing out has happened for many THQ shareholders. Am I the only THQI veteran to conclude that there is a unresolvable tension between the classic philosophy of long-term holding and THQI's business model? Note that I loved THQ's business model all the way up until this February, when I decided that THQ's continual efforts to acquire in-house software development had negative consequences I hadn't anticipated, and it meant that the company itself recognizes the danger of relying too much on outsourcing. Prior to February I had always thought buy-and-hold was a valid strategy for THQ. But now, while I think the stock is buyable on valuation, I think JAKK and ERTS are much long-term safer investments. I totally agree with Marc about end-of-the-year options BTW. I would love to by some November or December calls right now.