THQ Keeps Eye on Prize

Though THQ's short-term guidance fell short, it reaffirmed its outlook for the full fiscal year. The company's upcoming games include Ratatouille, a sequel to Cars, scheduled to coincide with the release of the movie in June, and an action title, Stuntman.

"The guidance is now more back-end loaded," wrote William Blair analyst Ralph Schackart, in a recent report. William Blair makes a market in shares of THQ.

Meanwhile, THQ remains an attractive pick among video-game publishers, says David Sandell, portfolio manager with Leeb Capital Management. The stock is cheaper than its competitors, he says, even as THQ has been working on its strategy of focusing on the Wii and using a mix of licensed games and internally developed titles to drive revenue.

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