Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Quad Sevens who wrote (7010)	7/21/1998 9:44:00 PM
From: Joe Casey	Read Replies (1) \| Respond to of 14266

Funny...everyone now thinks THQ is going to dip or crash after earnings this time while the last two quarters everyone thought it would keep rising. Sure enough, it didn't do what everyone expected. I think I'll maintain a contrarian attitude.

To: Quad Sevens who wrote (7010)	7/21/1998 9:51:00 PM
From: Sigmund	Read Replies (1) \| Respond to of 14266

Wonder why we are now invited in to the cc? Some possibilities: * Wants to make the charge against earnings clear and dilute any negative impressions * Wants to have investors hear what he has to say about MPRS directly. * Wants to announce a split....but that should happen after a Board Meeting. Has there been such a meeting recently? * General concern about false information being disseminated and wants as broad an audience as possible to get the true story from him directly.

To: Quad Sevens who wrote (7010)	7/21/1998 9:53:00 PM
From: gofrank150	Read Replies (2) \| Respond to of 14266

I have been tracking the reserve history of thq of the past several quarters. Thought I would share. Those of you who read MF will have seen this before.....but I am out to make some decent meaningful posts and hopefully win a free SI membership: the columns are quarter / net revenues / reserved revenue / gross revenue / % reserved 1q 1996 $6,582 $694 $7,276 9.5% 2q 1996 $12,087 $1,424 $13,511 10.5% 3q 1996 $11,102 $1,164 $12,266 9.5% 4q 1996 $20,483 $1,921 $22,404 8.6% 1q 1997 $11,839 $1,159 $12,998 8.9% 2q 1997 $12,265 $862 $13,127 6.6% 3q 1997 $16,355 $1,555 $17,910 8.7% 4q 1997 $48,903 $6,933 $55,836 12.4% 1q 1998 $48,453 $6,516 $54,969 11.9% Notice that before 4q 97 and 1q 98, reserves had traditionally been in the 9% range, but ballooned to around 12%. Odd, huh??? Think about it. In those quarters, so much of the revenue generating games (NWO in 4q and Nitro in 1q) were sold through by the end of the quarter. So why reserve more, when it clearly isn't needed???? My Thoughts: 1. Why beat estimates by any more than they did? 2. Save up now so you can have lower resvs once you start having to do year over year comparisons to the 4q 1997 and 1q 1998. Drop more to the bottom line then to keep the consecutive quarters of improving earnings streak well alive. 3. Saving up to be able to launch quest en masse without risking a charge if it were to have bombed. If this is the case, i would expect reserves to drop back down this quarter, since Quest didn't bomb. 4. Saving for more PC games in 3q - they carrier higher risk for return. Chris