Ail said:
HappySqurriel said:
As a general rule, most investors make very bad decisions ... It isn't that unusual to watch investors sell their stock which has already been over-sold to buy into a stock that is over-bought; and I think this has been impacting Nintendo's stock for quite some time.
When Nintendo surprised people and had a break out success with both the Wii and DS people rushed to buy Nintendo and the stock price was soon worth far more than was justified; and now that Nintendo's share price has fallen, people are selling driving the price far below what is justified. |
The current P/E is around 24 I would hardly think that it qualifies as being under priced....
Especially as the average P/E for S&P 500 members for example is 14...( I know Nintendo isn't a S&P member).
The growth prospect for Nintendo over the next few years aren't that great either compared to most S&P companies..
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For the past 20 years, the average P/E for the S&P 500 has been closer to 25; and the relative growth prospects for Nintendo are better than average.
