Monday, May 14, 2012

THQI - Earnings Release Tomorrow May 15th After the Close

THQI reports earnings tomorrow.  I don't think this stock is going lower.

26% of the Stock is in the hands of short sellers.

Today THQI traded so almost 500k in volume.  The total share volume that is short  is 14.26 million shares per Yahoo Finance.  That's over 28x today's volume.

The shorts are betting on THQI going bankrupt.  They have increased their bets in spite of a positive report from the company last month.

Look around your neighborhood.  Are the kids out playing stick ball?  Or inside playing video games.  THQI is the future, not the past.  This formerly $35+ stock has been in the dog house a long time and deservedly so.  The company is turning the corner and the shorts are either going to lose big, or  be scrambling to cover. 

Some of you may recall FFN a stock with a similar price and short interest.  The stock was at $.51 when I said that I though the short sellers were being over zealous. I was spot on.

FFN went from $.51 to over $2.70 a share.  Those who listened to me turned upwards  of 500% on that NASDAQ stock.

I think THQI will also see a short squeeze as shorts cover their positions.  Tomorrows earnings report could very well be the impetus.  Just imagine 14 million shares being covered in a stock that averages only 1 million shares the last 10 days.

THQ Fiscal 2012 Fourth Quarter Results to Exceed Prior Expectations

Year-End Cash Balance of $76 Million Significantly Exceeds Prior Guidance

AGOURA HILLS, Calif., Apr 18, 2012 (BUSINESS WIRE) -- THQ Inc. (NASDAQ: THQI) today provided preliminary, unaudited financial results for the fourth quarter ended March 31, 2012. For the fourth quarter, THQ expects to report non-GAAP net sales of $160 million to $170 million, which is above the company's previous outlook of non-GAAP net sales in the range of $130 million to $150 million. Revised net sales expectations reflect:
-- continued strong net sales of the critically-acclaimed Saints Row(R): The Third(TM), which to date has shipped in more than four million units;
-- higher-than-expected digital sales, largely driven by the robust digital content of Saints Row: The Third; and
-- slightly higher-than-expected net sales of UFC(R) Undisputed(R) 3, which was released mid-February 2012 to highly-favorable critical reviews, achieving an average Metacritic score of 85.
The company currently expects a fiscal fourth quarter non-GAAP net loss per share in the range of $0.10 to $0.20, compared to its previous expectation of a net loss per share in the range of $0.35 to $0.50.
THQ expects to report cash and cash equivalents of approximately $76 million at March 31, 2012, three times higher than the previous expectation for its year-end cash balance, due to better-than-expected operating results in the fourth quarter, as well as earlier-than-anticipated cash receipts. Additionally, the company ended the quarter with no outstanding borrowings on its $50 million credit facility, and did not borrow against the facility during the quarter. The company expects to utilize a substantial portion of its cash and cash equivalents as well as its credit facility as it launches its slate for the 2013 fiscal year, beginning with Darksiders(R) II.
THQ's GAAP results for the fourth quarter ended March 31, 2012 are expected to include non-cash software development charges of approximately $30 million to $50 million resulting from decisions made related to the company's previously-announced product strategy.
THQ will report full GAAP and non-GAAP fiscal 2012 fourth quarter and full-year results, along with a reconciliation of those results, and provide its outlook for fiscal 2013 on Tuesday, May 15, 2012. Conference call details will be provided closer to the date.
About THQ

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