kn said:
FishyJoe said:
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. |
True that, but... I personally don't believe that Nintendo will continue to grow like they did over the last year. In order to sustain this type of growth momentum, they will esentially have to double the number of Wiis they sell on a monthly basis worldwide starting in November. I'm sure they will get some growth from economies of scale alone and not having to reduce their price right away, but when things settle down to a normal sales pattern as I think they will after the holidays, I don't believe they can maintain their current growth. Keep in mind that current growth is just downright astounding and it's tough to keep that going no matter how good you are... I've not really looked at the stock carefully enough to provide a truly informed analysis but personally, and I don't care what stock, if I was up 200%, I'd be selling off some shares -- at a MINIMUM back to my original total dollars entry point. Yep, I also left an enormous amount of money on the table with Apple.
Since we are now on stocks, which do you like? My current stock porfolio consists of: Intel, Cisco, Schlumberger, General Mills, GE, Citigroup, Bank of America, Idearc(Verizon Spinoff), Verizon, Prudential, and Wyndham Resorts. I'm well into LT on all of them at this point. |
it's about how much return you're expecting. nobody expects nintendo to go up another 200% anytime soon; but if you think it'll go up another 50% in a year, and you don't think you can get 50% return anywhere else, you're better off staying put (risk aversion aside). to sell would be to rebalance (reduce risk), as you mentioned.
