Should You Speculate on THQ?

Not overly bad, in a relative sense. Considering the general market conditions, down 25 cents to $6.49 (which is what my screen is showing as I write this) isn't too shabby.

According to Reuters, THQ made an adjusted 6 cents per share, five pennies better than expectations. More importantly, perhaps, is the comparison to the previous year's adjusted results. The corporate press release says that a loss of 54 cents was recorded at that time.

There's no doubt about it: the software publisher, whose competitors include Activision Blizzard (ATVI) and Electronic Arts (ERTS), is doing better. In terms of valuation, I wouldn't call the business cheap, but it may improve its proposition in that area over time.

Here's the deal: THQ is for risk capital only. Those who buy have to understood that they are speculating. Yes, this is one of those stocks that could get a sudden pop. I do believe THQ will eventually rise again, but judging by its one-year price action, it doesn't represent a guaranteed shot at capital appreciation. If you do buy, make the company only a small portion of your portfolio, the part you can afford to lose.

Disclosure: I don't own any company mentioned; positions can change without notice.