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

To: AreWeThereYet who wrote (4043)	3/15/1998 9:05:00 PM
From: Sigmund	Respond to of 14266

I think one of the problems we had with THQI is that many of the investors in THQI have a big percentage of their portfolio invested in THQI. That combined with being overextended in general can lead to bad decisions. How do I know, I have a number of times including recently been a victim of this. IMO it is not good to be so at risk with respect to a single security. When THQI started to fall, there was not as much buying of the bargain as might otherwise have been expected. On Friday many THQI lovers stepped in. What will happen now? Perhaps the stock will recover and that would be nice. If it declines to $20 there may be another wave of panic selling. Margin calls are not fun. As those who like THQI as an investment have had a larger part of their portfolio committed to this stock, the downside risk has increased. This was inevitable because just going up in price increases the percentage of holdings in this security. When enough holders are shaken out and when excess holdings are eliminated, the risk of extreme declines will be reduced.