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Forums - Nintendo Discussion - Nintendo stock down 9% last 2 days

thekitchensink said:
Heavenly_King said:
Viper1 said:
Heavenly_King said:
looks like WiiU is not selling as expected?

Which is funny because it is selling as expected.

How do you know?


I don't know if it's selling as expected or not, but they have said they are expecting 5.5 million by the end of March, and it'll likely be past 2 million by the end of this month, despite only being available in some places for about 3 weeks, so I'd say it's reasonable to assume.  Besides, launches aligned, it's been selling much better than either the 360 or PS3 did for being out this long.

Lets not forget that the numbers we have right now are VGchatz numbers, so I think that before making those statements Nintendo should release information.



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Nintendo is a cyclic investment because its value is so closely related to the console release cycle ...

Right now they're at (or near to) their cyclic low; in part because of the high losses and lower revenues associated with a new batch of consoles and also because analysts (and investors) have consistently bet against Nintendo since the 90s. For some reason people assume that their competition will be able to release a system that is dramatically more powerful, at a reasonable price, with a strong line-up from day one, and new competitors will be able to steal Nintendo's market with little resistence.

In 2 to 3 years, when the 3DS and Wii U have large userbases that are buying a boat load of Nintendo games, Nintendo's revenues are gigantic, and Nintendo's costs are low because they haven't ramped up to releasing their next generation system, Nintendo's stock will (probably) be approaching their cyclic high.

While I could be wrong, and it is entirely dependent on timing, I believe there is the opportunity to double or tripple your money if you invest in Nintendo at the right opportunity.



Heavenly_King said:
looks like WiiU is not selling as expected?

I think you are correct.  For many companies, esepcially those in consumer electronic, its all about managing expectations.  Nintendo being down 20% since its launch indicates to me that people are selling based on Nintendo not being able to meet their own expectation of 5.5 million Wii U and 5 million Wiis by March 2013.  Why wait for Nintendo to tell you the bad news themselves, by that time, itll be too late to sell.



Heavenly_King said:
Viper1 said:
Heavenly_King said:
Viper1 said:
Heavenly_King said:
looks like WiiU is not selling as expected?

Which is funny because it is selling as expected.

How do you know?

How do you know it's not?

I dont know nothing of both cases, that is why based on the OP I thought that it was not selling as expected.   Meanwhile, you were the one that stated it is selling as expected.  So how do you know?

If you just had an opinion, you expressed it  the wrong way wrong.

So you infered the Wii U was not selling as expected based on the last 2 days of stock trading?   The problem is that Nintendo never gave any launch day projections for investors to even work with.   If stocks are sliding, it has little to do with launch sales.

When you look at trading for the past 3 months, you'll notice launch sales of the Wii U aren't at play.

Besides, ~1 million in sales this early on has them nicely in their 'offically announced to investor' projected pipeline of 5.5 million by the end of the FY.



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I should have mentioned that I suspect the reason the stock is falling is because of speculators ...

I expect that there were quite a few people who bought Nintendo stock in the weeks leading up to the release of the Wii U in the hopes that Nintendo would have a record breaking launch. If they invested on margin and the Wii U sold better than the Wii they could have been looking at a 20%+ return on investment after a couple of weeks; but since the Wii U did not sell that well, they're probably dumping the stock to cut their losses.



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HappySqurriel said:
Nintendo is a cyclic investment because its value is so closely related to the console release cycle ...

Right now they're at (or near to) their cyclic low; in part because of the high losses and lower revenues associated with a new batch of consoles and also because analysts (and investors) have consistently bet against Nintendo since the 90s. For some reason people assume that their competition will be able to release a system that is dramatically more powerful, at a reasonable price, with a strong line-up from day one, and new competitors will be able to steal Nintendo's market with little resistence.

In 2 to 3 years, when the 3DS and Wii U have large userbases that are buying a boat load of Nintendo games, Nintendo's revenues are gigantic, and Nintendo's costs are low because they haven't ramped up to releasing their next generation system, Nintendo's stock will (probably) be approaching their cyclic high.

While I could be wrong, and it is entirely dependent on timing, I believe there is the opportunity to double or tripple your money if you invest in Nintendo at the right opportunity.

From 1994 to 2005 which covers all nintendo's dedicated handleds(except the redesign DS onward) the end of the SNES, the N64, virtuaboy and the Gamecube, Nintendo was dead money stock wise, even though they had very good earnings year in and year out.  So no they will not be returning to any cycical high anytime soon.



Train wreck said:
Heavenly_King said:
looks like WiiU is not selling as expected?

I think you are correct.  For many companies, esepcially those in consumer electronic, its all about managing expectations.  Nintendo being down 20% since its launch indicates to me that people are selling based on Nintendo not being able to meet their own expectation of 5.5 million Wii U and 5 million Wiis by March 2013.  Why wait for Nintendo to tell you the bad news themselves, by that time, itll be too late to sell.


As I said in my last post, I suspect it has more to do with speculators than investors ...



HappySqurriel said:
Train wreck said:
Heavenly_King said:
looks like WiiU is not selling as expected?

I think you are correct.  For many companies, esepcially those in consumer electronic, its all about managing expectations.  Nintendo being down 20% since its launch indicates to me that people are selling based on Nintendo not being able to meet their own expectation of 5.5 million Wii U and 5 million Wiis by March 2013.  Why wait for Nintendo to tell you the bad news themselves, by that time, itll be too late to sell.


As I said in my last post, I suspect it has more to do with speculators than investors ...

Speculatos will cause Nintendo to miss their Wii/Wii U projections?  Thats news to me.



Heavenly_King said:
thekitchensink said:
Heavenly_King said:
Viper1 said:
Heavenly_King said:
looks like WiiU is not selling as expected?

Which is funny because it is selling as expected.

How do you know?


I don't know if it's selling as expected or not, but they have said they are expecting 5.5 million by the end of March, and it'll likely be past 2 million by the end of this month, despite only being available in some places for about 3 weeks, so I'd say it's reasonable to assume.  Besides, launches aligned, it's been selling much better than either the 360 or PS3 did for being out this long.

Lets not forget that the numbers we have right now are VGchatz numbers, so I think that before making those statements Nintendo should release information.


Fair.  I certainly don't think such shaken investor confidence is warranted, though.



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Train wreck said:
HappySqurriel said:
Train wreck said:
Heavenly_King said:
looks like WiiU is not selling as expected?

I think you are correct.  For many companies, esepcially those in consumer electronic, its all about managing expectations.  Nintendo being down 20% since its launch indicates to me that people are selling based on Nintendo not being able to meet their own expectation of 5.5 million Wii U and 5 million Wiis by March 2013.  Why wait for Nintendo to tell you the bad news themselves, by that time, itll be too late to sell.


As I said in my last post, I suspect it has more to do with speculators than investors ...

Speculatos will cause Nintendo to miss their Wii/Wii U projections?  Thats news to me.

Who said they were going to miss their projections?



The rEVOLution is not being televised