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

To: Harry who wrote (7416)	8/4/1998 2:40:00 AM
From: Jeff Lins	Read Replies (3) \| Respond to of 14266

Harry- you are correct. Many of THQI's games originate in Japan, so those wouldn't be published there by THQI. Many games which THQI gets , will not have Japanese distribution rights. As for the remaining games, the Japanese have their own taste in games. What sells big here may not do squat over there. Very few crossover hits. Buying anything over there would be a waste of money. Bleeker- correct on the dilution. To everybody out there, a convertible bond is dilutive. Period! The whole point of showing basic and dilutive is to show where you are, and what a worst case would be. Not a worst case if this or that happens. Yes, this will have certain impact on EPS in coming quarters. (love having you guys over at EIDSY! especially to clean up after my messes!) To those of you who think nobody is growing at THQI's rate- partially correct. The fact is that everybody has grown leaps and bounds over the last year (well, maybe not MPRS :). Though THQI has done a great job in virtually all areas, growth rates will slow down as they get bigger. The discussion about buying Sierra or AKLM is pointless. Way out of THQI's financial league. Way out. And no, they can't just buy Blizzard, the only part of Sierra worth a hoot as of late. I think they are a bit too smart to sell off the crown jewel of gaming. And also, they can't just buy some games from MPRS. That is all that MPRS really has to offer. This won't be an option until the padlocks go up on their front door. And then there will be a bidding war for the good stuff like Civ and Falcon, and they will both go to ERTS with the big money. As for competing in Europe, they will have their hands full. I don't see THQI publishing the kind of titles that will be big in Europe. 60 million is a lot for a relatively small company. I don't see the stock doing much until everyone knows where it is going. And then seeing how well they integrate whatever it happens to be. To be honest, I am surprised that the stock has held up so well to date. Another point: would I be correct in saying that THQI has made its big money by having a mega-hit every so often? Seems that they have done this fairly regularly, which is certainly good, but what if they go a quarter without the mega-hit? A nice thing about having a small number of shares outstanding is that an extra million bux looks great. But it works the other way as well. It wouldn't be very difficult for THQI to lose better than a buck a share if a quarter goes very badly. Does anyone know the impact of the lower price for a N64 players choice game? Does nintendo cut a deal on royalties? What is the opinion of 20M for the WWF license? Clearly it is a great license and will make THQI a lot of money. But 10 years is a long time, and 20M is a big deal, and a mixed blessing in the financial notes. Where will wrestling be 2-4-6 years down the road? Will a different organization be hot? Will ERTS have done to wrestling what they have done to other sports (I don't know if sport is the right word...)? Wasn't trying to come off like a jerk, but I saw a lot of speculation that looked a bit off base. And wanted to point out that growing the first couple of hundred percent is easier than subsequent growth... Jeff