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

To: Brian MacDonald who wrote (8964)	12/12/1998 11:46:00 AM
From: AreWeThereYet	Read Replies (1) \| Respond to of 14266

I can't believe it??? Who the hell is this Stephen Quickel??? While I am glad to see more and more financial publications hint THQI to their readers. The basis of Quickel's suggestion is an insult to THQI, to Brian Farrell and to all long term THQI shareholders. 1) net profits stand at $11 mil (vs $ 9 mil last year and $2 mil in 1996) huh? Is Quickilled trying to misleading readers? $11 mil net income is already reached on Q3, we still have the biggest Q4 yet to come. How about a comparison like this one: Net Income 1998(e) 18 to 20 mil 1997(a) 9 mil 1996(a) 2 mil 2) Shares now stand at $24-$25... The article published on Dec 9th, THQI last traded at $24.x is around Nov 20sth. So keep in mind that Quickilled's recommendation can be 3 weeks late. 3) Shares now stand at $24-$25, up from $13 in the Oct meltdown but still well below mid-July's $35 What? Mid-July high of $35??? Didn't he realized there is a 3 for 2 split in late August? Or he simply want to inflate the old high by merely 33%? What an idiot? 4) six mos ago earnings for 1998 and 1999 were projected at $1.26 and $1.44 per share, but today those are raised to $1.57 and $1.85 per share. Not surprised here since Quickilled is always 3 weeks late, the consensus estiamtes are now up to $1.69 and $2.04 respectively. 5) Our work suggests a 6-to-12 mos target price of around $32 to $35 based on a P/E upgraded to 15 and the prospect of Y2K earnings of $2.25 per share. Are Stagger and/or King part of your team? That's very generous to upgrade THQI forward multiple to...15 on a company with better and more consistent performance than ERTS. If not all these mistakes he had made (some are unforgivable for a professional), Stephen's recommendation is actually fairly good. I agree with him FDX and THQI are great buy. aC Here is the full article, if you don't mind to read some jokes for the weekend: -- Game Software Maker's Turnaround Paying Off (THQI) Wednesday, December 9, 1998 "This is a promising small-cap stock," says growth stock investor Stephen Quickel about THQ Inc. (THQ). The firm makes video game software for the major platforms (Nintendo, Sega, Sony) and sells it through the major outlets (Toys R Us, Wal- Mart, Target). Nintendo accounts for nearly two-thirds of sales at the moment. THQ bought Broderbund's game business in 1991 but incurred heavy losses in 1993-94 as it spent to develop its product line. But a new CEO started turning the company around beginning in 1995, and his efforts paid off. Sales are now above $150 million, net profits stand at $11 million (vs. $9 million last year and $2 million in 1996), and there is no long-term debt. Shares now stand at $24-25, up from $13 in the October meltdown but still well below mid-July's $35. "What's a fair price for THQI?" Quickel asks. He says that six months ago earnings for 1998 and 1999 were projected at $1.26 and $1.44 per share, but today those are raised to $1.57 and $1.85 per share. This yields a P/E of just 13x forward earnings which compares well to analysts' five-year growth rate consensus estimate of 30.5%. "Our work suggests a 6-to-12 month target price of around $32 to $35 based on a P/E upgrade to 15 and the prospect of Y2K earnings of $2.25 per share," Quickel says.

To: Brian MacDonald who wrote (8964)	12/12/1998 1:56:00 PM
From: jesse dravah	Respond to of 14266

Good post, it is nice to have something from the North of North America. You are right about the various games flying off the shelf. The rentals from Blockbuster here in the Balt-Wash area can't keep revenge in stock. Everytime I go in all the copies (8-15) are rented out. I would think this means these people are trying it out and then going to make a purchase. Anyway keep checking those channels.

To: Brian MacDonald who wrote (8964)	12/13/1998 6:32:00 PM
From: BulbaMan	Respond to of 14266

For a stock play on Zelda, check out KIDE. KIDE has the exclusive merchandise licensing rights to all Zelda related products, as well to other Nintendo game product offshoots (including the Pokemon Game Boy), throughout the world (except Asia). KIDE has 3 million shares out with stock at about $12 and the CEO has forecast their 1998 EPS to exceed $.70 (mostly driven by their WCW licensing royalties). In 1999, KIDE will have Zelda and Pokemon to add to their growing WCW royalties. KIDE's CEO, Al Kahn, was the guy behind Cabbage Patch Kids.