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


To: Sigmund who wrote (2774)12/27/1997 12:58:00 PM
From: Double Dipper  Respond to of 14266
 
At this point in the cycle I'm more interested in how many are
left on the shelf than how they get there. Now is the time
most retailers to start discounting sales in preparation for annual
inventories. I not sure how this works but THQ keeps a resource
pool that is kept back from earnings to cover charge back
expenses against to cover discounts/credits to retailers. I'm sure I didn't state this correctly but it is my understanding that non-sales
somehow impact earnings. Could someone with a better understanding
of this process explain how earning will be impacted by how much
inventory is left over.

Thanks,

Kevin