In research note to investors Mon., SWS Securities analyst Arvind...
In research note to investors Mon., SWS Securities analyst Arvind Bhatia reiterated “strong buy” rating for stock in game maker THQ. He said company’s “stock has been up 6 out of 7 times in calendar 4th quarter since 1995,”…
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
adding: “We believe this is not coincidental but a reflection of the company’s kids-oriented product mix, more suitable for the holiday season. The company’s product-mix comprises such strong brands as Rugrats, Scooby Doo, Jimmy Neutron, Bob The Builder, Power Rangers, Rocker Power, Hot Wheels, Matchbox, Wild Thornberry, Battlebots, Monsters Inc.” Bhatia said last, which recently shipped for GameCube, “could benefit from the extremely strong DVD/video launch of Disney/Pixar’s Monsters Inc., which sold 5 million units on DVD and video in N. America on its first day: “THQ’s future product lineup includes several titles based on licenses from Disney/Pixar and Marvel Enterprises. Separately, we believe the recent title shift between Q3 and Q4 [of select titles] will have a net neutral effect.” Bhatia said 3 PC games -- Bob the Builder, SpongeBob SquarePants: Revenge of the Flying Dutchman and Rugrats Munchkin Land -- “although planned for Q4 have already been shipped. However, Virtua Tennis [for Game Boy Advance], Rocket Power Beach Bandits (GBA) and Jimmy Neutron: Boy Genius (GameCube), have been moved from Q3 to Q4… We believe the company has repurchased some shares under its recently authorized buyback program (up to $25 million). We believe the share repurchase program is particularly appropriate given the company’s strong balance sheet -- $228.6 million in cash ($5.44 per share), no debt and the lagging stock performance. The buyback, if fully executed at current prices, could add up to 4? to our EPS estimate of $1.71 per share.”