I can't believe the drop we had today. A well run company with good earnings coming up, yet we get thrown out with the bath water. There is one potential explanation for this drop. As Russia (I still want to call it the Soviet Union) falls into the abyss, the most directly affected will be the Euros, especially the Germans. There is alot of Western European money in Russia, and now that money seems to be evaporating. Potentially this could adversely affect the economies in Western Europe. So how does thq fit into this? Well its a stated goal that thq is targeting the European market. The quarterly reports show continued growth in oversea sales (Western Europe). If Europe is dragged down by Russia, thq could potentially lose many sales in a market it was planning to expand into. This is just a thought. If you have another opinion I like to hear it.
This is my theory as to why THQI has experienced a drop... 1) Short sellers are driving it down 2) Many institutional traders are on vacation..after Labor Day they will buy with avengence. 3) Market Maker Manipulation-trying to shake everyone out. 4) Margin calls caused by huge market downturn.. AT this price THQI represents an absolute STEAL.... They will earn $2/share or more which equates to a 7PE They have 0 debt... They have many titles coming out for XMAS. THey are securing deals for late next year and beyond. THey have great management who has much incentive to get the stock price up. They will have the #1 selling game once RUGRATS comes out They could earn $3 a share next year.... They have the best ROE in the business. They have the best balance sheet in the business. They have the best brains in the business.
So, avoid the ridiculous and be patient....this stock will most likely double in 12 months to $30 or so a share...
Although I share your enthusiasm for THQ, some of your comments are extreme.
<They will earn $2/share or more> this year.
No they probably won't. If you meant pre-split, I can concur, but if you are talking post-split it would mean over $3 pre-split. Not impossible, but not likely. $1.50 post-split excluding the GameFx charge is much more likely. Which gets us to about a PE of 10 at todays price.
<They could earn $3 a share next year....>
This would be $4.50 pre-split. Again, hugely aggressive. That would be a 100% increase in earnings from my guess of $1.50 in 1998. Again, not impossible, but not likely.
BTW, as a native North Dakotan, I can confirm that avacados are eaten, however, only with a fine wine. :-)
Hey, I've held this stock since last Aug. I'm not selling. I agree that this is a good company, with a good Xmas season lined up. You don't have to convince me...talk to the sellers and shorts. By the way, why is it that my haas avocados are more expensive here in San Diego than in North Dakota?. Are you people in Fallbrook ripping us off? Do I smell market manipulation on the avocado market???