THQ (NASDAQ:THQI) Tumbles on Talks that May Direct to Significant Dilution

The money-losing Agoura Hills, California-based THQ Inc (NASDAQ:THQI) moved down around 7.2% after reporting talks that may direct to major dilution for stockholders.

Shares of THQ, The video-game producer that’s in default on some debt covenants, plunged 4.8% to settle in New York at $1.19 at 11:26 AM in after plunging around $1.16.

The maker of games comprising “Saints Row” had plunged 84% current year as of Wednesday.

THQ reported on Nov 13 that the company was working with Wells Fargo Capital Finance LLC to settle a technical default on its $50 million credit facility.

Shifting reader’s focus to broader market, let us consider market performance of other stocks that significantly affect same sector. The Walt Disney Company (NYSE:DIS) rose +0.50% to settle at $48.68, Electronic Arts Inc. (NASDAQ:EA) moved up +0.79% to end at $13.97 while Activision Blizzard, Inc. (NASDAQ:ATVI) jumped +0.98% to finish at $11.35 on Wednesday.

THQ Inc. (NASDAQ:THQI) last session’s volume of 332,029 shares was surprisingly lower than its average volume of 351,530 shares. The stock after opening at $1.26 hit high price of $1.28 and then closed at $1.10 by scoring -12.00%.

The liquidity measure in recent quarter results of the company was recorded 1.03 as current ratio. The Company had total cash of $36.27 million at hand and a book value per share as $-6.01 in the most recent quarter.

The stock’s price volatility was 10.91% for a week and 12.84% for a month as well as price volatility’s Average True Range for 14 days was 0.23 and its beta remained at 2.21.

THQI generated revenue of $730.73 million in the previous twelve months and earned -$117.27 million. The Company showed a negative -16.05% in the net profit margin as well as in its operating margin which remained at -15.09%. Company’s annual sales growth for the past five years was -4.15%.

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