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

To: M. Frank Greiffenstein who wrote (13848)	5/24/2000 10:15:00 PM
From: Jim Oravetz	Read Replies (1) \| Respond to of 14266

It looks like the SI ERTS thread is even more ignored than this one. This is a snipit from Briefing.com that was posted there. Looks like they are hanging onto bare threads at ERTS also. At least BF and Co. came out with a public statement and not a private phone call with analysts. The market has been so beaten up, I'm a little surprised thq did not sunk even further on the bad news. ......That carnage has been the result of worries about a slowdown in sales and heightened competition that has been tied to the transition from the current slate of console platforms to next generation technology, such as Sony's PlayStation 2. Those concerns haven't been entirely unfounded either as was evidenced in the latest earnings report from Electronic Arts. Although the company posted Q4 earnings of $0.16 a share, $0.02 better than the First Call consensus of $0.14, that was well below year-ago earnings of $0.37 per share. Moreover, excluding the results of EA.com, revenues rose just 5.4% to $288.04 mln-- a far cry from the 29% year-over-year gain Electronic Arts had averaged over its previous 13 quarters. North America accounted for a little more than half of the firm's total revenues while international markets accounted for the remainder. A decline in sales of Nintendo 64 products, which had been expected, was an impediment with respect to top-line growth as was the devaluation of the Euro which adversely impacted European revenues. The company's net income of $10.8 million before charges was down 54%, and it was also noted that the operations of newly-acquired Kesmai and DreamWorks reduced operating income by $0.8 million in the quarter. snip.... Message 13580742 Jim

To: M. Frank Greiffenstein who wrote (13848)	5/25/2000 1:17:00 AM
From: Marc Newman	Read Replies (1) \| Respond to of 14266

ERTS hasn't really warned, it just keeps getting its estimates cut. TTWO is small enough and so dominated by PC and distribution that it appears to be staying alive (barely). THQ management had to know about this a long time ago. But they wanted to give themselves 100 days since the previous warning so they could argue that they had more time to see how business was disintegrating. But we knew that non-WWF biz was bad as early as Nov./Dec. So basically I saw give me a break. Two things. One, it will probably trade higher after a gap down. Ie, the first five or ten minutes will probably be the lows of the day. Happened that way with AKLM in January and ATVI just a week or two ago. Two, check out JAKK especially on any collateral damage. JAKK is more diversified and has fast growing earnings and revs. It also has a true hit homegrown toy product right now, the BXS trick bikes. It doesn't hurt that it is the highest margin product that JAKK sells. Besides the load of WWF booty that THQ pays JAKK every quarter of course. Btw, according to Andrew THQ/JAKK Smackdown was #1 for the sixth straight week in the UK. Unprecedented wrestling sales over there. Marc