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

To: Quad Sevens who wrote (10062)	2/28/1999 10:23:00 PM
From: Sigmund	Respond to of 14266

Hey guys....I go out of town thinking I have left THQI in good hands and what happens!!!!!!!!!! I am making good money on this job but not nearly enough to cover me for what you guys are doing to the stock. When Todd says buy....you must buy. Get with it please. Its sunny in Florida but this freefall puts me in a bad mood. I will be back Thursday night and hope that the picture is brighter then.

To: Quad Sevens who wrote (10062)	3/1/1999 1:54:00 AM
From: Todd D. Wiener	Read Replies (3) \| Respond to of 14266

Wade- I think the P/E=growth rate concept is related to my discussion about future cash flows and time horizons. It seems to work fairly well with the 8 year horizon. If a company were to earn $1 in 1998, and it will grow by 15% for the next 8 years, it would produce approximately $15 in cash flow. Therefore, it should trade at $15 now. That's a P/E of 15. If THQI is going to grow by 30% for the next 8 years, based on 1998 EPS of $2.00, it would produce $62 in the next 8 years (without discounting the cash flow). Based on trailing EPS, that's a P/E of 31. Obviously there are other considerations, such as market dominance (i.e. MSFT, CSCO, INTC), but the P/E=growth rate is a general guideline that approximates the stock price to expected future cash flows. Todd