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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (28841)	7/15/2002 9:58:10 PM
From: JoeinIowa	Read Replies (1) \| Respond to of 29382

Sergio, You don't think Ken was sleeping with the fishes do you? That would be bad. Caught this on the AKLM thread on Yahoo. US Bankcorp Piper Jaffey Leisure Sector - AKLM-#>, ATVI-#>, ERTS-#, HAS-#>, JAKK-#@>, MAT-#, TTWO-#>, THQI-#@> June Quarterly Earnings Preview KEY POINTS: * We believe video game software publishers experienced a solid June quarter and recent retail sell-through continues to be healthy. Historically, the summer months are slow with only 15 percent of annual retail sales occurring in the June quarter. * NPD Data suggests console software sales in April and May grew 20 percent from the year-ago period, in-line with our assumptions. * We believe the 2002 holiday selling season for video games will prove very robust as the installed base of hardware is tracking to expectations. Our 2002 video game software sales growth estimate of 20-22 percent is well within reach (up 24 percent year-to-date through May). * The traditional toy sector remains in a transition period as retailers work to streamline inventory levels. We think retailers are running very lean inventories and buying patterns remain conservative. The second half of 2002 should prove healthy, as the inventory alignment process is complete and slack is taken out of the supply chain. Overall, we expect Toy Manufacturers to report a lean in-line June quarter. * Our top pick remains THQ Inc. (THQI, Strong Buy, $24.34) for the video game sector as the long-term fundamental prospects and valuation remain very attractive. We also believe Mattel (MAT, Strong Buy, $19.50) in the toy manufacturers sector remains attractive as the company continues to optimize its business and we expect it will generate strong free cash flow in the second half of 2002 and during calendar 2003.