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

To: Robert G. Harrell who wrote (9166)	12/30/1998 12:06:00 PM
From: Zirdu	Read Replies (1) \| Respond to of 14266

Here's Hanies post on AOL explaining why he "sold" THQ. It looks like all his THQI got called away when he wrote covered calls. This is why I don't like covered calls, by the way. Holding stocks is risky, as witnessed by THQI going below 10 in the recent past. To compensate for this risk, you should have the chance to make outsized returns. By selling covered calls, you sell away your upside potential, while not protecting you much at all (other than the premium received for the call) from the downside. << OK, I admit this one actually got me laughing! For the record, I most certainly did NOT deliberately sell out my THQ shares a month ago...I was messing around with covered call writing, never in my wildest dreams did I expect THQ to soar from $9 1/2 to over $20 in such a short time period. Also never did I expect Brian Farrell to suddenly change his conservative nature and begin making promises about future quarters (something he told me personally he would never ever do as that is what got THQ into trouble in the first place). Also never did I expect THQ to begin bragging about how many units they shipped of this or that (again something Brian said THQ would NEVER do as that would give away their competitive advantage)...anyway just to set the record straight I lost all my shares due to being assigned the call options I had written against them. I was also mad about the market crash, the fact that THQ wasn't doing anything about their stock trading at $9, the one time write off, the purchase of GameFX in the first place, the 1/2 deal with Jakk's etc, etc, yet I guess it took me to actually invest in another company in the industry (Midway) before I realized exactly how well THQ does manage things. I mean how many games are being cancelled (Speed Tribes, Dead Unity, etc) yet you see no excuses from THQ's management..we are all expecting a blowout quarter. Yeah the shelves are bare, but that is probably the hardest thing to manage in the business...even Nintendo screws it up over and over again...too much Zelda, not enough Zelda..I read different headlines every day. Lastly, I just threw in the "idiot" phrase to get everyone all riled up again. Stocks go up and stocks go down...in the short run a company's performance and it's stock price have absolutely no correlation, yet in the long run they have a 100% correlation. Peter Lynch I think. THQ management knows what it is doing...they have proven this time and time again...I have no doubt they will come through with a huge 1999! As for selling or buying or margining here at $27 3/4 by $27 15/16, your guess is as good as mine. I am again betting on THQ the COMPANY not THQ the STOCK. I expect THQ the COMPANY to do $300 million in revenues in 1999. THQ the STOCK will bounce all over the place as it usually does, but in the end I expect it to be much higher than we are seeing it today.>>

To: Robert G. Harrell who wrote (9166)	12/30/1998 2:07:00 PM
From: Marc Newman	Read Replies (1) \| Respond to of 14266

I think that if one was fully margined entirely in THQI one couldn't avoid being a manic-depressive. And hard to avoid making a lot of money as well. Looks like 1.5 million Revenge this quarter and maybe a million Rugrats. Hard to get any idea of the quantities involved with the GB titles and the WCW PC titles but they should be bigger than any games released in Q3, ie very accretive. If Farrell can continue to find Rushware-type opportunities THQ can become a much bigger beast. Marc