Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Todd D. Wiener who wrote (10065)	3/1/1999 10:22:00 AM
From: AreWeThereYet	Respond to of 14266

Todd, I am 100% agree with that P/E should base on the earning growth rate. Use THQI as an example, it earns $2.00 last year, if it able to maintain 30% growth rate, it will earn $16.31 by the 8th years and a accumulate income of $64.03. Will it justify a p/e of 30? I will say yes. If you invest $60 in a 8% yield bond, you will have a $59 compounded interest income which is less than what THQI give you in earning alone, not to mention the stock appreciation. Although I don't agree with you on buy-back idea, it can reduce the float to put more pressure on shorts in addition to offset the option and dilution as a result of GameFX deal. It is a good idea but just the timing I am concerned. Got an advice from an experienced TA, he said $18 to $18.50 is the downside target of THQI. If support is found thrn trend should reverse from there. aC