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

To: JGreg who wrote (8662)	11/21/1998 3:42:00 PM
From: Brian MacDonald	Respond to of 14266

I'm not taking the $36 figure as gospel, but it does tell me that we have a long way to go upward from here. I also like the fact that there is such a large (percentage) short position on this stock. One wonders whether they (i.e. the shorts) will increase their exposure, or cover and take their losses before year-end. A stampede to cover could easily lift THQI past the $30.00 mark. Notice that on consolidation, the volume decreased noticeably. Volume also rose on any uptick. These are very bullish signs and with the latest good news, we should be nudging $30.00 very soon. If the predicted earnings are being increased daily and the Xmas selling season is really just beginning, those projected numbers could very well, as you have said, prove to be very conservative. I wouldn't be surprised to see THQ beat last year's numbers by at least 20% with any surplus placed in 'reserves'. If the market P/E is 26, and this stock was to trade at least at market multiples and the forward earnings projection for 1999 is $1.95, this scenario should result in a stock price somewhere north of $50.00. I haven't dared to think of comparing THQ with EA and their earnings. Perhaps one day, but not now. Brian