Nintendo Investors Thread

[OceanJ]

ulieq said:

OceanJ said:

Just how much Cash does Nintendo have, anyway?  Let's figure it out.

Below is a table of Nintendo's Current Assets from their latest Financial Report (million yen): 

Cash and Deposits	478,153
Notes and accounts receivable-trade	45,732
Short-term investment securities	402,446
Inventories	117,176
Other	136,760
Allowance for doubtful accounts	(362)
TOTAL CURRENT ASSETS	1,179,906

"Current Assets" just means what Nintendo has that can reasonably & readily be converted into Cash within about a year.

Cash & Deposits - Nintendo has 478,153,000,000 billion Yen in the bank.  At today's exchange rates, that's about:  $5,433,556,818.00  Billion U.S. 

The other item we can add to Cash & Deposits, is Short-Term Investment Securities.  We get:

880,599,000,000 Billion Yen...or about $10,006,806,818 (billion dollars).

Nintendo has a lot of money just sitting in the bank...

10Bill vs. a 14.4Bill market cap?    This cant be true? 

It looks correct.  This illustrates how out of favor Nintendo is with investors, and how depressed their share-price is. Let's look at it from another angle bringing Book Value into the equation. (Basically - Assets minus Liabilities).

From the latest Financial Report Book Value (Total Liabilities + Assets) is:  1,407,448,000,000 (trillion Yen), or $15,993,727,272 (Billion Dollars).

Thus with a current Market Cap of $14 Billion - Nintendo is currently trading BELOW BOOK VALUE, in spite of a new Console release.

What does this even mean? It means investors are actually predicting Nintendo's Book Value will decrease on a downward trajectory, i.e., Nintendo will continue to lose money!

That is why the word "profit" is so absolutely crucial for Nintendo in both Q3 and on the Annual Report.  Investors will be forced to make a price-correction on the shares.

Trading below book happens commonly in investing.  For example many of the financials like Bank of America are trading below Book.  But when you consider how much of Book Value is Cash for Nintendo with Zero debt....vs how much debt a company like BofA has, you begin to see what a ridulous investing opportunity exists, in my opinion.

Nintendo should be trading upwards of $20 / share right now.