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

To: Mr. Aloha who wrote (3909)	3/12/1998 3:54:00 AM
From: Sword	Respond to of 14266

Aloha: You're probably right. But we might not see a significant recovery until after the next quarter's earnings are released. -Jerry

To: Mr. Aloha who wrote (3909)	3/12/1998 1:47:00 PM
From: Quad Sevens	Read Replies (1) \| Respond to of 14266

<<< SALES OF WCW WILL CONTINUE FOR ANOTHER 12 MONTHS.. >>> You're missing the point. Even if near term earnings are unaffected by WCW's jumping ship, the PE accorded to those earnings will go down. As Sigmund pointed out, those earnings can (wrongly, but can) looked at as nonrecurring. Also, the risk in THQ is now (perceived to be) higher. As risk goes up, PE goes down. Farrell's business model is now in question. THQ is the victim of its own success: The more successful a license is, the greater the impetus for the licenser to look elsewhere for a better deal. If THQ is wildly successful with Rugrats, might Rugrats sign later with ERTS? These are the kinds of questions investors will now have in their minds. Farrell is a terrific CEO. He knows what he is doing. But it may take a while for this stock to recover. Wade