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

To: Marc Newman who wrote (2617)	12/17/1997 3:33:00 AM
From: StaggerLee	Read Replies (2) \| Respond to of 14266

>>(You did take into account THQ's latest expanded line of credit didn't you?) Now now...you're not suggesting that this growth is a temporary thing that can be mitigated by some short term borrowing, are you? If so, perhaps we should rethink the P/E on this stock... Run the numbers: $40 million in low margin Q4 '98 revenues, carried for 60 days. How many shares need to be issued in mid-1998 at $20 to cover it? And what's that do to EPS for '98, in addition to 34% taxes? A lot of analysts (and cheerleaders) are going to look awfully silly by June <g>. These are REAL numbers, folks. Find me a way that THQI earns $1.10 in 1998! No Freaking Way. If this company can combine 20% share dilution, higher tax rates, and lower margins and get 18% higher EPS, I'LL GO LONG!