FishyJoe on 29 August 2007
| kn said: If I was a long term holder of Nintendo stock, I would take most or all of my profits off the table at this point. If you are a 1 year holder of this stock, you have crossed the threshold of LT capital gains and are paying 15% on your earnings. You have also at least doubled your money. A smart investor takes some of that money off the table as 200% ROI is extremely rare to come by. It has nothing to do with how you feel about Nintendo products. It has everything to do with locking in gains... I don't see the P/E chart for ttm P/E, but it is 25X forward 1Y est. which is pretty high for my taste. I'd take my money and run to the bank. |
Not really, I used this logic with Apple and got burned BADLY. Nintendo has an enormous earnings growth rate, so you can't just look at the PE alone and draw a conclusion. A 25 PE is really quite low if you factor in growth.
