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

To: wolfdog2 who wrote (9957)	2/26/1999 9:11:00 AM
From: Ken	Read Replies (2) \| Respond to of 14266

I wouldn't call 20% "anticipated slow growth". Income from operations will grow at least 20% for THQ as indicated in the CC, consistent with the industry growth rate targeted in the double digits. The stock should trade in-line with its growth rate and if that is going to be 20% in the long-term (5-yrs), then the stock should be trading conservatively at $40 not $22. Now that is significant upside. In addition, as I've stated in an earlier message and as indicated in the CC, the company expects to have a cash chest of $50M which translates into $4 per share in cash. So, you are really paying only $18 for this company today, albeit $30M is the cash balance today as indicated in the CC. That said, count on me selling some profitable technology positions in today's market to raise lots of cash to buy cheap THQ shares.

To: wolfdog2 who wrote (9957)	2/26/1999 12:10:00 PM
From: Brian H.	Respond to of 14266

Wolf, I agree totally with that. I think to an extent BF is as frustrated as we are with the stock price. I also believe that we will handily beat the street for FY 99. It already looks like we are going to handily beat 1st quarter numbers, and those will be released in another 6-7 weeks. IMHO THQ will probably do around $2.40 EPS for the year. One thing I found interesting was that little was said about the Star Wars games and the distribution. I think that could potentially be very good for the company. I am frustrated with todays price, but am very comfortable with where this company is going and the downside risk. THQ is under valued, and when it will become properly valued is a good question. I do believe that we can continue to grow at a 20% growth rate, and that being said should at least merit a mid $30's price, but then who said the markets are fair. Brian H.