"What do you do when a stock that you thought was a buy at $33/share falls to $16.50/share? You reassess your investment thesis and act accordingly. We thought Nintendo offered a good long term value investment opportunity before the tragic tsunami in Japan and after a 50% drop last year we feel it is now a great long term investment. Nintendo’s cash and cash equivalents currently comprise around 50% of its market capitalization. It has gotten so cheap that we had to create a new rating, Super Mega Buy. We feel that Nintendo’s stock currently has more upside than Apple. Our investment thesis is that Wii U will return the Big N to revenue and earnings growth for the next 3 years. We also feel that reports of the death of the 3DS after its release were greatly exaggerated. Clearly we have been early, but our investment thesis has not been refuted as of yet. As a result, we are upgrading Nintendo today to Super Mega Buy from Buy. Goldman Sachs has their Conviction Buy List, we now have the Super Mega Buy rating."
How about the fact that since you put the stock as buy it has been down 54% ? Isn't that a refutation of your thesis ??????
PS3-Xbox360 gap : 1.5 millions and going up in PS3 favor !
PS3-Wii gap : 20 millions and going down !
