To: Jim Fitzgerald who wrote (8999 ) 12/15/1998 10:16:00 PM From: Wildman262 Respond to of 14266
I don't know if this link has been posted. Bonzo on the AOL/Motley Fool board found it. It will help you understand the value of what THQ does, and the complexities of the industry. gamecenter.com Below is a response to a friend asking where I thought THQ was headed: The analysts reiterated with strong buys after the last CC 10days ago which outlined the Rushware acquisition in great detail. THQ got a great buy on Rushware and instant distribution opportunities for their products. Additionally, Rushware has products that THQ will bring to the US market. If the market monkey can stay off our back, I think THQ has a good shot at $35plus going into the 4th quarter announcement, which will be in mid to late Feb. I don't think we are off any radar screens just yet. I think we are getting on additional radar screens. In fact, IBD (Investors Business Daily) has high rankings for THQ(all the William O'Niel CANSLIM gurus read this publication) CANSLIM is an acronym for various qualities that a company must have before they invest. I also think THQ is taking a hard look at further acquisition, mergers or selling out. They move put Jeffery Lapin in charge (he is on THQ board) of reviewing these strategic opportunities. IPLY(Interplay) may have some things of interest to THQ. If THQ were bought out next week, I believe we would command $40 EASY. There continues to be consolidation and acquisition in the industry. I think THQ is in a great position. Other companies in the industry are beginning to notice THQ's model of making money. THQ uses a lot of outside developers. Game developers are creative people..and the stereotype of a coke drinking, pizza eating, computer geeking, staying up all night, sleep till noon, is not too far off. Who needs the aggravation. Besides, if a developer is involved with a hit game for a publisher (i.e. if a THQ employee developed the next #1 hit on his own,) the next thing they usually want to do, is either go off on their own, or move on to the highest bidder. It is a difficult asset to keep around and THQ has discovered, (at least for now) that makes more sense to use outside developers. (you don't pay them vacation, benefits or options) Overall, the most obvious strength is the THQ management team and their ability to make things happen at retail. This will become more evident to those that read the link I posted above.