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

To: leisuresports who wrote (9248)	1/8/1999 3:10:00 AM
From: Marc Newman	Respond to of 14266

<<depending on how conservative the company decides they want to be in reporting their earnings.>> Well, one of these days all those earnings are gonna have to come down to the bottom. It looks ridiculous to have reserves equal accounts rec. The SEC is starting to crack down a bit on excessive reserving and perhaps the independent auditors are too. So maybe Farrell will be a bit less "conservative." I do have to say that THQ does have a habit of big numbers--look at last Q4 and especially Q1. I think we'll get one that makes people say wow this time too. From Herb Greenberg's piece today: <<An item here two months ago wondered whether there was a difference between "cookie jar" and "honey pot" accounting. The SEC had waged an assault on what it called "cookie jar" accounting, which is when companies create bigger-than- needed reserves during good economic times that they can reach into during bad economic times to make earnings look better than they really are. The term became relevant to any analyst who happened to listen in on a Network Associates' (NETA:Nasdaq) conference call this past September, when CEO Bill Larson told analysts how he builds "little honey pots" and how his company creates "acorns" to help when sales are off.>> THQ, a much better buy now than a month ago, Marc PS--Jeff, I can't wait to see the numbers of the first shipment for N64 Rugrats. Its so much less of a risk now that the PSX version has proven itself.