| TheLastStarFighter said: Great news last night with Nintendo regaining a lot of value on Osaka. The gains were credited to NDP reporting... which surprised me. It also reinforces that most people who invest in Nintendo are not like us. They are not in the games trenches, and they definitely aren't following weekly sales reports on VGChartz. It provides a great opportunity if you follow the industry closely. I'm also not big on diversifying. I've been an all eggs in one basket investor to date and it's worked very well. Hopefully it continues to do so. I try to become as big an expert I can on one industry and invest heavily in an under-valued stock. I like strong, established companies and industries. I've invested in automobiles, banks and energy in the past. I like Nintendo for it's high cash reserves and very established brands. Even if its consoles bombed, the mario image and games have tremendous values. But I don't expect their consoles to bomb, since they have an outstanding history of using older tech to produce high profit margins. |
To me it proves that day to day movement of a stock price is a very simple-minded thing. Much more simple-minded than investors who bury their brains in stats would like to believe.
A simple spin-job PR release like Nintendo did last night, is enough to move it up. And all the negative publicity around the Wii U, the overall Video-Game industry revenue declines, and fear-mongering that traditional consoles are dying...is enough to keep it down around these levels.
Short-term, a stock-price is one giant spin-job. It's only in the longer term that actual stats & company financial reports puts it back where it should be.
Nintendo's stock right now, should be trading close to $20 / share. It's tangible-book value is about $14/share...with a new console on the rise it's totally insane to be trading below tangible-book.
When you buy a Nintendo share today, you're very close to buying just their Cash & Short-Term investments in the bank! It's like getting a $1 for a $1 almost! Shares today are hardly factoring in the value of any Nintendo IP or profits. It's totally insane.
