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

To: Marc Newman who wrote (3596)	2/26/1998 4:11:00 PM
From: AreWeThereYet	Read Replies (1) \| Respond to of 14266

Closed right on $30, volume hairy more than yesterday. We almost see $33 this morning but profit takings begin earlier than I expect. aC

To: Marc Newman who wrote (3596)	2/26/1998 4:44:00 PM
From: Sigmund	Respond to of 14266

Marc, I agree with you that I now also feel much less risk in owning this stock. If you take earnings of $1.50 and a PE ratio of 20 the stock is fairly valued right now. Anything above that in terms of where an investor might think earnings will fall or an appropriate PE ratio is upside potential. In previous years, March was not a good month to be a THQI shareholder. But I find it difficult to believe that many will want to be out of the stock given the prospects for much higher prices later this year. Will the stock drop back to $25 and conveniently stay there until April 1 so that everyone can jump back on board. Possibly but I don't think so now. I thought that would be the scenario on Wed but when I saw those earnings, in my mind it changed everything. One cautionary note however, the prospects for a takeover are in my mind zilch until the license question is resolved. Whatever ones estimate of the importance of this license going forward it will impact the value. Also any move to acquire THQI now would negatively impact their ability to close the deal so I think we will have to wait until that is a done deal either way for anyone to seriously consider moving on THQI. But THQI is a money machine so there may very well be a lot of interest once the license question is resolved. Anyone interested in this would be well advised to move sooner rather than later so once the license question is resolved I think we will know very soon which way THQI is moving i.e. being a buyer or companies or themselves being bought out.