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

To: Jonathan Lebed who wrote (3888)	3/11/1998 9:54:00 PM
From: Sigmund	Read Replies (2) \| Respond to of 14266

PE of 5? I don't think so. This was not good news for THQI but not anyway that bad news. But I agree that WCW product sales represent a mixed blessing now. They will be treated more or less like revenues from a discontinued operation. You can take these revenues and the resulting earnings and net present value them. They then will be valued to some extent as a one time profit on the sale of an asset. I don't think the success of these products will drive the price of the stock very much at this point in time. More attention will be paid to revenues from other products and future product plans. If these revenues materialize and if the product plans and other arrangements are appealing, I think THQI will do very well. I think that all of the arguments being made that the WCW license would eventually diminish in value are somewhat believable. The problem is that before last evening, no one needed to think about how THQI will maintain its track record of beating quarters and also beating analysts estimates. Now it is something that requires investor faith. All those in the stock do not automatically have this faith. It will need to be reearned. It think it will be reearned.