THQ stock plummets 50 percent
THQ's stock is (as of this writing) down 42 percent, trading at $1.74, following yesterday's dramatic second quarter earnings conference call.
The conference call, which totaled 12 minutes, concluded with CEO Brian Farrell saying that the company had been "advised not to conduct a [question and answer] session" following prepared remarks because it is currently "exploring strategic alternatives" with a company that handles private equity deals.
THQ took drastic measures a few months ago to save its stock, after shares fell below a dollar and the company was threatened with NASDAQ delisting. The solution was a 10-to-one reverse stock split, turning THQ's 70 million shares into 7 million. That action moved the decimal point on the company's $0.51/share stock into $5.16/share. THQ's market capitalization at the time stood at $35.4 million. Now, a couple months later, with today's drop it sits at $11.9 million.
THQ has been working other angles to obtain cash to continue doing business, selling off its UFC license earlier this year to Electronic Arts for an "undisclosed cash payment." Selling off more assets is still on the table, but the company doesn't plan to disclose developments or progress until the board and its advisers at Centerview Partners LLC deem it appropriate.
Update: THQ's stock closed the day at $1.50/share, down 50 percent.
