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

To: Brian H. who wrote (9890)	2/25/1999 11:30:00 AM
From: Robert G. Harrell	Read Replies (2) \| Respond to of 14266

He clearly said he was very comfortable with $2.15 for next year. I just checked the intraday chart on Yahoo. There were some pre-conference call large buys but right at the end of the CC the sells started. As of 11:05 there was an institutional size sell, 20000+ trade. This market makes no sense today. THQ has a great report and CC and sells off. Interest rates are going up and FAF, which usually trades in the opposite direction of interest rates, pops up 1-1/2. Go figure.... Let's hope rationality returns soon. Bob

To: Brian H. who wrote (9890)	2/25/1999 11:43:00 AM
From: Todd D. Wiener	Respond to of 14266

Here are some of my CC notes--information not covered by others: As part of THQ's new 3-tier PC strategy (formerly 2-tier), high-end full-price, mass market low-price, OEM, THQ is launching 2 titles for OEM channel---Brunswick First Strike and Sinistar:Unleashed. These titles will also hit the retail channel later on. Q3 title that has caused some confusion on this thread-- Road Rash 3D for N64. This is a license from EA, developed by DT Productions. It's a motorcycle racing game where you have to knock your opponents off their bikes with chains, kicks, etc. Right now, THQ has nearly $30 million in cash. By the end of April, THQ should have over $50 million in cash, as inventory and receivables are liquidated. About $5 million in writedowns were taken in 1998, mostly Q4, on titles that were not likely to work. Only one mentioned was Dead Unity. Perhaps Speed Tribes was another part. Since International Rally has been pushed back consistently, maybe that is terminated,too. That's only a guess. No specifics, but Farrell hinted at THQ's expansion in the mass market game genre. They already have bowling, wrestling, fishing. I suppose the obvious choice is deer killing, but that's a bit old. Maybe they'll acquire ADRN and publish that rodeo title and US Amateur Boxing title. Farrell DID NOT say that 1999 will be flat to slightly positive in growth. He said that about 2000 over 1999. But only for the overall market, not THQ. He said THQ expects to continue to gain market share in 2000. By my account, THQ has grown about 4 times the rate of the overall industry for a few years. If that continues, THQ should grow by 80% in 1999 and 30-40% in 2000. Farrell said that Sony and other publishers are going to try to manage the platform transition better in 2000 than in previous cycles. It should be smoother for THQ because the Gameboy Color market is growing nicely, and THQ intends to remain the leading 3rd party publisher for this market. Also, THQ expects to have a larger portion of sales from PC titles in 1999 and even more in 2000, as GameFX technology matures. Also, as PSX hardware continues to drop, especially after launch of DC, THQ may reintroduce older PSX titles at lower price points. Just as in the last transition, THQ will leverage the existing platforms. THQ plans on a WWF title for PSX in 2000 (my guess is Q1). Through Rushware, THQ will distribute 5 LucasArts titles for PC and PSX, most of which will be reflected in Q3 and Q4 1999. Excellent conference call. I'm baffled by the sell-off, as usual. Todd