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

To: Marc Newman who wrote (7756)	8/28/1998 10:53:00 PM
From: Kelvin Taylor	Respond to of 14266

"From what I've seen, today was a lot better on the small cap front, indicating that many stocks may have bottomed. THQI had good volume and for the first time in days, didn't close at the lows. In fact, it closed well above the low." Really? Marc, I hate to be negative on such a bad day stockwise, but today was worse for a several reasons. Today marked the 6th consecutive day of decline for THQI. The closing price was only 3.5% above the low and 9% below the best level. For the week the stock lost 25%. Each day this week the stock closed closer to the low than the high and volume increased significantly: from 70K on the 24th to 453K on Friday. $13 marks the lowest level seen since the mid March (split adjusted). THQI is clearly oversold. The weakness will subside and the stock will gain some buying support at some point, but are we at the low? I'm not so sure we are. The main concern I have in the short term (next 30 days) is buyers will come in to take advantage of the low price and quickly sell on small moves thus keeping the stock in a narrow trading range until October. Buying beaten down stocks and selling on strength is not a terrible thing. In fact with this type market it's better not to hold too long. If there is one thing I've learned over these past 2-3 months is when a company reports good earnings and the stock reaches new highs (at least with the small caps) one would be wise to sell on the good news, regardless of how good it is or what the future prospects look like. THQI is not the only stock to sell-off on better than expected news. PXXI beat estimates by $0.07. The stock climbed from $14 to $21. Where is it now? How about $12. I hope for better times come Monday. Have a good weekend everybody. Kelvin