Analyst: Nintendo will be bankrupt in 5 years

[Joelcool7]

Alby_da_Wolf said:

Joelcool7 said:

Too many pages to actually read. However he obviously doesn't know much about Nintendo.

[...]

Had you read some pages, instead, you'd have learned that Richards, Astley, & Company Associates LLC is a financial services and investments firm even more respected than Pachter's Wedbush, so you're wrong and they're right. 'Nuff said.

 

And beware since this thread started posting in analysis threads without having before dispelled one's own ignorance about Richards, Astley, & Company Associates LLC importance has become a bannable offence.

lol honestly I don't give a crap which company it is. How accurate they have been in the past or their reputation. Saying they are more respected then Pachter and Wedbush is nothing to be proud of. Pachter has been wrong about almost every single analysis he has made in regards to Nintendo.

All my points are based in fact and common logic that anyone with basic knowledge of Nintendo would be fully aware.

My own ignorance? lol as I said I don't judge an analysis based on which company produces it. I judge it based on the analysis itself. The CIA suggested their were WMD's in Iraq and the US Government invaded saying they were going after these WMD's. Yet guess what no actual WMD's were found at least nothing like the CIA had suggested.

See you can't just rely on a company or organization because they have a good reputation. Yah I wouldn't say that the whole company is filled with moron's because they're has to be informed and intelligent analysts. In fact I am guessing that the analyst in question is probably knowledgeable in his field. But unlike Pachter who is almost always off his rocker when it comes to Nintendo Spader from what I can see online is not a video game industry specialist.

A quick internet search reveals very little about Mister Spader other then the fact he is a marketing consultant! I see nothing about his expertise in anything game related I could be wrong. It seems he is a businessman like many businessmen who can't see far into the future or know how a company is known to work.

Everybody knows that every company goes up and down, none stay leader forever its impossible. Even the most successful businesses in the world like Coke and Disney have all gone down at one point. They never bit the bullet but fact is if you have actually researched these companies you would notice that they always bounce back.

An analyst telling people where to invest their money should be telling the reader which company is cheap and going to reap the most rewards. Anyone who knows Nintendo knows they can't go down much further and after a year or two at most the company will return to profitability on a regular basis. Will the company become the hit it was with Wii and DS over night? No but within a year or so I'd expect to see profits back up to a level that maintains operations. By next generation Nintendo could become king again.

But that's not even the issue I have with this analysis. I know consumers want fast easy cash and they invest often on a whim in companies they have no clue about. This means the analyst has to decide whether the consumer will benefit from his analysis right away's or not. So I understand not backing Nintendo in the short term because we don't know when Nintendo will turn the profits it did during Wii/DS.

But saying Nintendo will go under in five years is illogical and moronic. A basic analyst who did any research into Nintendo's finances knows that they have billions upon billions in reserves. Last I heard Nintendo had over 13-billion in reserves the company isn't going anywhere and Nintendo themselves are likely to start acquiring their stock back shortly so that the idiot investors don't force them to make bad decisions.

Fact is I heard it argued that Pachter  has all these top secret facts about Nintendo's financials that aren't available to the press. Assuming Richards, Astley, & Company Associates LLC is more respected then Pachter's Wedbush then this kind of statement is completely insane. People pay analysts to give them advice on each company and research should be put into each analysis, the analyst should have been fully aware of Nintendo's past and present.

Facts like saying GameCube was a failure for example, it turned a massive profit for Nintendo so big that it rivaled Sony who sold easily 5-times as many hardware units.

Nintendo is not a dumb company and they aren't going anywhere within the next ten years unless ill informed moronic investors force them to make stupid business decisions like going third party!

Even if Nintendo took consistent losses and by that I'm not talking the losses they took with 3DS. I am talking horrible losses like 4-5 billion a generation they would last another two generations easy (10 years) and then they would still have resources to start a third generation. But losing 5-billion a generation would be nearly impossible.

Also any analyst who has a history in the industry would no that Sega took almost three generations of losses. Starting with their add on's Sega-CD/32X followed by Saturn and DreamCast. They also lost GameGear barely breaking even if at all. Yet Sega a company in a far worse financial position then Nintendo has been in memorable history. Sega survived for about 10 years of consistent failures. Nintendo couldn't possibly do as bad in the near future.

In other words yes this analyst is full of crap. RIM I can't really say I see them rebounding anytime soon so he may be on the money there. Some of his other companies he has listed are doing equally bad. But Nintendo is healthy in fact this last loss was the first major loss recorded in a long time. Nintendo rarely ever operates at a loss and annual losses are virtually non-existent.

This guy I assume has a much higher education then I do, he works for a very important firm and making such an ill informed statement as to say one of the biggest entertainment companies in the world is going to go down within 5 years considering its history is just foolish!