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

To: Ron Harvey who wrote (7394)	8/1/1998 1:52:00 PM
From: JoCo	Respond to of 14266

Would be interested in hearing people's opinions on alternative strategies for managing the convertible issue. As a shareholder, I would philosophically rather pay a higher interest rate for a higher exercise price. If I am correct, it would reduce the dilution level and benefit buy and holders over the long term with higher interest expense in the short term. Of course, the underlying assumption is that THQ will generate a return on assets (25%) far in excess of the cost of debt. I also think that a successful sale under this structure would demonstrate that there are some savvy people that believe enough in the future of the company that they are willing to buy in at a higher exercise price. Any thoughts?