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


To: Bleeker who wrote (6205)6/20/1998 8:06:00 AM
From: Jim Willie CB  Read Replies (1) | Respond to of 14266
 
until THQ has a stable of stable revenue streams, moves beyond the controversy and instability of its wrestling source, and achieves a certain size, it will not command respect by wall street with a competitive PE ratio

that day of steady stream, stable wrestling, and size is coming soon ... comparisons to ERTS and EIDSY will appear out of kilter soon

my guess is THQ price needs to build a base in upper 20's, experience some new buyers, cull some shorterm players who entered at 20-23, work at it for a week, and then catapult the pillars of the Bastille

STORM THE BASTILLE !!!

/ JW



To: Bleeker who wrote (6205)6/20/1998 9:58:00 AM
From: vc21  Read Replies (5) | Respond to of 14266
 
Bleeker,

Points well made on the eidos and erts front. However, THQ may write off the whole shebang this quarter and thus have negative earnings after the charge.

Secondly, I don't know where the analysts get the industry average of 22. It definitely is not 22.

Activision: 33
Electronic Arts: 41
GT Interactive: -
Acclaim: -
THQ Inc: 14
Eidos: 25
3DO: 4
Microprose: -
Interplay: -
Take Two: -
Midway: 11.5

I know I am missing some companies but that's a PE of 11.6 over this average. Even if you added three companies to this list with a PE of 40, the average would still be 18. So, I'd take that industry average of 22 with a grain of salt.

- Vic