|"Overreliance" on wrestling titles?|
Seems to me I've heard that before. I think it was back in '98 when the company derived about 75% of its revenue from the WCW license (and the stock was about $5.00). As for the capitalization of development costs, that argument is almost as old and almost as valid. A number of misguided souls have lost their shorts betting on these premises. Anyone here remember Staggerlee and Mr. Woodland? The shorts who made money on THQI were those who anticipated the problems associated with the recent platform transition.
I have to admit that I'm confounded that wrestling has held up as well as it has, and wouldn't be surprised to see it decline. Additionally, this just isn't the season for video game stocks. I wouldn't short THQI on either count, but I'm watching it and hoping for a good buying opportunity around August/September. Fact is, this Management has demonstrated an uncanny talent for being in the right place at the right time.