Tarumon on 03 January 2013
| OceanJ said: I'm a Nintendo investor and really appreciate this thread. I've been wanting to talk about some NTDOY shares. So here's a question. American Nintendo shares (PINK:NTDOY), are ADR's (American Depository Receipts), which allow for American's to easily invest in foreign companies. But the shares themselves are subject to currency exchange rates. As the Yen gets weaker, the value of NTDOY shares goes down. For example say $1 = Y50 and a Japanese Nintendo share trades at Y50/share. It costs you $1 to buy a Japanese share. Now the Yen weakens to $1 = Y100, and a Nintendo share is still Y50/share...you only get 1/2 a share, and the share you bought's only worth $.50. But at the same time Nintendo's making a lot more money as the bulk of their sales is overseas. So the value of their stock should rise. How do we judge as an american investor in (Nintendo), whether a weaker Yen is better? Seems to be a balance equation. My guess it depends A) What the exchange rate was when you purchased your shares B) How much profit is overseas. Guessing under only some outlier circumstances, a Weaker Yen is better for American Nintendo investors. Anybody know for sure how to figure this out? |
I own shares of Nintendo directly as well as via the ADR. There is a formula for the conversion, I will try to dig it up for you.
