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Strategies & Market Trends : STOCKS WITH ATTITUDE TEAM - FA/TA AND EVERYTHING ELSE -- Ignore unavailable to you. Want to Upgrade?

To: Dave H who wrote (850)	12/26/1997 8:38:00 PM
From: Sergio H	Respond to of 2377

<I know it's higher priced than what we normally look at, but if you have a chance I'd like to know your opinion on THQI. I think it's a mimbo with great potential. So far to me the fundamentals look good, but it's not my strong point! (They make games for nintendo, sega, and sony...similar industry group to RADAF, I guess!)> Dave, they even have a fishing game, Bass Masters Classic Fishing. THQI is a sofware company. ANALYSTS: They have received two strong buys. Furman Selz and Wedbush Morgan, the latter was the underwriter for the secondary offering of 1.5 mil. shares in Feb at a price $7.50/share. Yahoo indicates that one other analyst has a hold rating and I coud not find that. Company was selected for IBD's Magic 25 list and was a presenter at the Micro Cap Conference in Nov. EARNINGS: 11 consecutive quarters of improving earnings is not too shabby for a company in this sector. They have new hits in Bravo Air Race for Sony Playstation and Madden Nfl 98 for Sega along with re-orders of their top-seller WCN VS THE WORLD. Company introduced Pax-Imperia, Eminent Domain, PC game in October, targeted for the XMAS season. THQI is trying to improve their profit margin by increasing sales in the PC game and 32 bit/64 bit platforms. For the quarter ending 9-30-97, Nintendo sales were 60% and Sony Playstation = 29% of total sales. THQI has two new games based on Disney movies coming out in 98. In the first q, a game based on the summer movie release of Mulan and in the fourth quarter a game based on the movie to be released, A Bug's Life. The latter movie is being made by Pixar and is eagerly anticipated. Insiders own about 17% and Institutions about the same amount. There has been no insider buying or selling since May. In Sept. there was institutional buying and selling. The short position has been steadily rising over the last 3 months but as of the end of Nov. it still did not equal the avg. daily vol. so it is still a small short position. CONCLUSION: Company seems to be making all the right moves and has had successful game releases. This is an unforgiving sector and a company can quickly fall out of favor. The company has been funding its growth by issuing more shares. The dilution has not dimished their growth.