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


To: Quad Sevens who wrote (9655)2/8/1999 4:26:00 PM
From: OGM  Respond to of 14266
 
Wade,

I would like to check out Navellier's MPT at some point, as I enjoy learning about new investment approaches.

My point on volatility or beta (which is usually a core part of MPT, and MPT was developed out of the efficient market theory) is that it's a crummy proxy for risk. THQ is a great example of a company that has a lot of price volatility, but at certain prices has very low risk.

For a short time in October the shares were selling at 13 and change. The company had fantastic fundamentals, proven management team, proven model, lots of products in the pipe, low P/E, strong and consistent ROE, etc.....but the stock had been hit hard. On a volatility basis or a relative strength basis the stock was a lousy one to own. But on a fundamentals basis the stock was a bargain.

Anyway, it will be fun to see how things develop around the earnings release. I only wish the stock would drop another few points to make it as attractive to buy as it was in October and (I believe) April of 98.

Thanks,

OGM



To: Quad Sevens who wrote (9655)2/13/1999 11:48:00 AM
From: Jim Willie CB  Respond to of 14266
 
<<According to Mark Hulbert, he's [Navallier] done very well over the past 10 - 15 years. Jim Collins, co-conspirator in this approach, has done very well too.>>

yeah, and Collins bagged out of THQ last summer when it went pre-split from 31 to 20 ... only to miss the triple post-split from 10 to 32

Navallier uses alphas and low volatility much more... Collins uses earnings growth more, even when PE is high

/ jim willie