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

To: Dave Hanson who wrote (3819)	3/11/1998 12:49:00 PM
From: Sigmund	Read Replies (1) \| Respond to of 14266

This is now a special situation so there may be a period of time before a consensus forms on an appropriate PE to apply to THQI both with respect to trailing and projected earnings. I think we were counting on the statement by Farrell about being comfortable with 30% earnings growth looking out into the future as signifying that a 30 PE ratio was reasonable. (30)($2) = $60. But what do we use now. The $2 remains intact. Perhaps a 15 PE ratio on projected 1998 earnings is not unreasonable until the outlook for replacing the WCW revenues clarifies. I think the future will probably gain visibility rather quickly and that will probably be good for this stock.