Man this is depressing. Just when we thought that things might be looking up for publisher THQ, their second quarter earnings report has demolished their stock prices yet again. During the conference call (the same one in which they announced the delays to their three biggest titles), CEO Brian Ferrell told people that THQ had been advised not to conduct a Q&A session and that the publisher is currently “exploring strategic alternatives” with another company that specialises in private equity deals.
Stuff like that doesn’t inspire faith in a company, and as a result THQ’s shares lost 50% of their value in one day. This comes after the company was forced to do a “1 for 10 reverse stock split” in order to avoid being delisted from the stock exchange. That was back in July, and it resulted in THQ turning 70 million shares valued at $0.51 each into 7 million shares valued at $5.16 each. That manoeuvre helped revive the flat-lining company, but to put things into perspective, THQ’s stock used to be valued at $30 each.
Now THQ is in trouble once again, with their stock closing yesterday with a value of $1.50 per share.