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

To: Mr. Aloha who wrote (4747)	4/21/1998 8:34:00 PM
From: Bleeker	Read Replies (1) \| Respond to of 14266

Regardless of my 39 cents expectations, just for the sake of argument, let's take the low end of the analyst forecast: around 32 cents, right? Now add that to the most recent three quarters and we end up with a P/E of 19.3. That is a VERY DEEP discount to the conservative P/E average of 23 that both Wedbush Morgan & Volpe Brown use for this sector (forget the high 20 P/Es for the broader market or the sector that we have used in the past.) 32 cents gives you EPS of $1.55. So even if THQI failed to meet the estimate--which I am not suggesting here--by four cents it would need to trade up to $35-36 to attain a P/E of 23. In my opinion, that is still too low of a P/E considering THQI's acquisition of Game FX, but I am trying to show the negative scenario if THQI failed to beat estimates. Is that possible? Again I am playing devil's advocate here but remember that estimates have already been raised to 36 cents from the high 20s. Perhaps estimates were raised to aggressivelyto 36 cents. Just another perspective. Bleeker