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

To: Kelvin Taylor who wrote (10935)	5/27/1999 2:02:00 AM
From: Marc Newman	Read Replies (1) \| Respond to of 14266

In the past, these temporary collapses with recovery by day's end have turned out pretty well. We'll see. Nintendo's sales are doing great: quote.bloomberg.com I have to think that THQ had a better April than last year due to Rugrats PSX at number nineteen, Rugrats GBC release, and strong European Rugrats sales. Plus, I think WCW sales are higher than a year ago. I assume May is also better than last year. That leaves June--it's essentially the initial shipments of Quest 64 (last year) versus Rugrats 64. Since Rugrats is a more anticipated title than Quest, I imagine Farrell can really futz with the initial shipment. No lost sales if the rest ship July 1. There may be a last big WCW shipment too--we've never gotten good info on how this is going to work. So I think THQ will report excellent growth next quarter, in the 30-50% range. Rugrats is selling so well there's no way THQ can really hide the income--it's the same thing we saw with WCW before. THQ can really generate a ton of eps with one or two hit games. Also, that horrid GameFX charge will drop off, with nothing to replace it. Sometimes stocks need to go through these long basing periods. To use a stock I know well, consider Apple. Last August the stock briefly hit $43. Tuesday the stock closed at $41 1/2 or so. This after a huge jump in eps and unit shipment over the last eight or nine months. Same thing with THQ from Thanksgiving to now. I'm excited about both stocks and look for a good June and great July from both. Oh yeah, there's that big licensing show in NYC again. The week of June 7, I believe. Last year THQ got WWF at the show. Maybe we'll see something else good this year, like the one more big license we need to get some real stock price appreciation. Until then, growing eps will continue to drag the share price forward, kicking and screaming, quarter by quarter. Last June and July THQ went from $20 or so to $36. I could easily believe we'll see $21 9/16 to $33 this time around. Maybe more with a new license or if Rugrats 64 looks to be a million seller. Marc