With all the hype surrounding the wii and the great success it found with the casual crowd, Nintendo's stock got greatly overvalued. The share price couldn't possibly be maintained unless Nintendo managed to keep a firm hold on the casual crowd; they have proven that the casuals are too fickle and the entertainment market to unstable for that. Right now the the share price is being revalued. It will continue to be erratic until investors get a better idea of what Nintendo is attempting to accomplish; When that happens, a more reasonable and stable price will be set. One that accounts for the fact that Nintendo is no longer the sole patron of the casual crowd and that they now cater to a portion of the hardcore crowd.
I personally would not put any money into Nintendo stock right now until I have a better idea of the viability of their vision. I will monitor the situation closely and try to establish what I believe to be a reasonable price point based on information as it becomes available; that information is still much too vague. Buying Nintendo's stock at this time will be more a matter of faith than the technical and fundamentals.
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