Interesting Info !!! Thanks for all your work. Your estimates are a bit on the high side imo. On the the other side you proved something that's even more important than everything else: With WWF/Jakks settlement in place suddenly THQ is not a litigation gamble anymore, suddenly it becomes easier to model THQ. And that's the message i want to hear from the management in february on the quarterly conf call: we had a problem, we had to readjust our business model, we fixed it, we fixed our legal problems, here's our plan for this year (with numbers). And suddenly THQ looks good again. Shall TTWO produce four super dupper uber games and still lose 60-80 cents on it, shall ERTS produce tons of AAA titles and still lose 1$, shall ATVI sell a trillion of CoD: MW2 and still barely make some money on it. THQ hasn't the stellar IPs, hasn't the coolness of Rockstar games BUT hopefully they'll tell us that they make some money, and in the end, as a shareholder, that's all i want to hear. I give a %+%& for all those super cooool uber publisher as long as they don't make any money and keep %&/*ing their shareholders.
Blog or not. This analysis sounds about right to me. The chart is now trending up and everything is in place to move much higher. I am glad I loaded up some more at $4.28. We will look back and kick ourselves for not buying in this range.
I used to hope that THQ would be bought out. Their portfolio of games is highly undervalued at this level. I just hope it sells for north of $15 per share. At almost 1 billion in revenue per year, that would be $1 for every $1 in revenue. ERTS & ATVI will see the value once THQ can turn cash flow positive.