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THQI: They Just Couldn’t Thread the Needle

November 6th, 2012

At no point over the past 3-years have we felt that we were in denial about the issues that THQI faced in trying to turn the company’s earnings prospects around.  We were intimately aware of the company’s disproportionate exposures to the very segments of the video game...

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THQI: Waiting on Darksiders…

August 7th, 2012

Realistically THQI’s 1Q13 results were more or less a side show.  The company did not release any new games in the quarter, so the focus of the earnings call was primarily on THQI’s release slate and efforts to reposition itself in the marketplace.  In one week, THQI will release...

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THQI: The Power of One

May 16th, 2012

In April 2009, in our very first report on THQI we wrote the following:“Over the past 15-months, THQI’s stock has declined in excess of 80% in large part due to poor execution by the company in its efforts to target “core gamers” and decreased receptivity among young consumers for...

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THQI: Perception vs. Reality

April 18th, 2012

For the first time in a long time, THQI shareholders received some good news today.  The stock has been in a steep decline over the past 4-5 months since the uDraw disaster.  We recognize that people remain highly skeptical of management’s ability to execute on its plan to transform the...

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THQI: Cost Cuts Likely Take Liquidity “Crunch” Off the Table and Are Bigger Than You Think, Option Value Remains...

February 3rd, 2012

THQI reported 3Q12 non-GAAP EPS that was actually higher than our forecast ($0.35 vs. $0.31).  Unfortunately consensus expectations were considerably higher, so we consider this somewhat of a...

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THQI: uDraw a Razor without a Blade, Mauls THQI’s Quarter Despite Solid Sales of Saints Row the Third and WWE 12

December 8th, 2011

THQI reduced its holiday quarter revenue guidance by 25% last night; the company did not provide an update on its EPS or cash flow expectations.  In an ironic twist, all signs suggest that THQI’s core...

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THQI: Strong Critical Response to Saints Row the Third Should Bolster Sell Through – This Looks Like the Long Awaited...

November 11th, 2011

We’ve been watching our screens this morning in bewilderment at the stock price action in THQI.  Make no mistake, Saints Row the Third is the most important title in the history of the company. ...

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THQI: The Time is Now, Saints Row the Third Could Herald the Arrival of a New THQ

November 3rd, 2011

If we have learned anything about THQI over the past 30-months since we originally started recommending the stock as a long idea it’s that shares can turn on a dime.  Even though the stock now trades more than 40% below where we...

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THQI: Asymmetric Return Potential Remains High; Catalysts Aren’t THAT Far Off

July 28th, 2011

In our preview of THQI’s 1Q12 earnings results we wondered aloud as to when the “summer of discontent” for shareholders would come to an end.  Well it appears based on the company’s 1Q12 results, revised outlook for FY12, and stock...

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THQI: When Will the Summer of Discontent for THQI’s Shareholders Come to an End? 1Q12 Preview

July 25th, 2011

The summer of discontent for THQI shareholders has admittedly lasted far longer than we could have ever imagined. Shares now trade at 1.0x book value and a meager 10.0x CONSENSUS estimates for FY12, both of which represent...

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THQI: E3 Post View, Evaluating THQI’s Digital Strategy While We Wait for Space Marine and Saints Row

June 15th, 2011

In the 7 trading days since the start of the annual E3 video game convention, THQI shares have declined 16%.  The E3 convention has historically served as an opportunity for video game developers and publishers to...

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THQI: The Setup

May 4th, 2011

In many respects, THQI’s 4Q11 earnings report and subsequent conference call was everything longs could have hoped for: The company reported EPS upside (even though revs were slightly below consensus) Quarter ending cash was higher than expectations Homefront has achieved profitability The...

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THQI: What Do We Know?

May 2nd, 2011

In the six weeks ago since we penned a report entitled: “Homefront’s a Hit, the EPS Implications” we have been asking ourselves the same question over and over (and perhaps many of our clients have been saying the same thing) – What do we know? The 30% decline in THQI’s shares over the...

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