Train wreck on 10 December 2012
| HappySqurriel said: Nintendo is a cyclic investment because its value is so closely related to the console release cycle ... Right now they're at (or near to) their cyclic low; in part because of the high losses and lower revenues associated with a new batch of consoles and also because analysts (and investors) have consistently bet against Nintendo since the 90s. For some reason people assume that their competition will be able to release a system that is dramatically more powerful, at a reasonable price, with a strong line-up from day one, and new competitors will be able to steal Nintendo's market with little resistence. In 2 to 3 years, when the 3DS and Wii U have large userbases that are buying a boat load of Nintendo games, Nintendo's revenues are gigantic, and Nintendo's costs are low because they haven't ramped up to releasing their next generation system, Nintendo's stock will (probably) be approaching their cyclic high. While I could be wrong, and it is entirely dependent on timing, I believe there is the opportunity to double or tripple your money if you invest in Nintendo at the right opportunity. |
From 1994 to 2005 which covers all nintendo's dedicated handleds(except the redesign DS onward) the end of the SNES, the N64, virtuaboy and the Gamecube, Nintendo was dead money stock wise, even though they had very good earnings year in and year out. So no they will not be returning to any cycical high anytime soon.
