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: Sigmund who wrote (7854)	9/1/1998 3:13:00 PM
From: Ron Harvey	Read Replies (2) \| Respond to of 14266

<<We may know what caused this weakness. Right now, it is just a mystery but a disconcerting mystery none the less.>> I really don't think it's mysterious. THQI has always been a highly volatile, speculative company. People have been predicting (for reasons that utterly eluded me) that the activation of the split would propel the stock to the North Pole. When it didn't happen, there was disappointment, which turned to fear (the other side of the emotional coin of excessive optimism) when the stock drifted lower. Then when the stock market looked like Armageddon and margin calls began rushing in, the fear became a short-lived (I hope) rout and frightened investors were desperate to sell, an emotional wave that affected huge numbers of stocks (Dell, for instance, was down close to 20 yesterday), not merely THQI. Unless I'm really self-deceived, I don't think there's any mystery here. I now own 5K at 9 7/8 and 30 call contracts, a lot more than I planned for because I shoveled so much into ABTX yesterday in the 8's. But the bargain seemed unusually attractive. Consider this: Not long ago the post-split high was 24 and today (rounding off) the stock bounced off of 10. Often, as these things seem to happen (no science here, of course), a stock does what I think of as the 50% Retracement Dance. If I'm right (lucky) THQI in the relative near term moves to the halfway point between 10 and 24, which establishes a goal of 17. Interestingly, that's about what it was when it split. (Please note that a goal isn't a prediction, which is just a form of wishful thinking.)