Nintendo's stock price misleading analysts and people in general.

[benji232]

Now, over the past 2 years, I keep seeing people and analysts that are saying that Nintendo isn't in a healthy position due to their stock price down over 80% since 2007. Now, this is a fact that their stock has been going down. But the thing is, it's not going down because they are not healthy as a business, their stock prices are simply going back to their "normal" prices. What I mean by this is that their 2 phenomenons (the wii and the ds) both made their price become ridiculously overvalued. And now that these 2 phenomenons are dead, their stock price simply "crashed" to the pre-wii and ds prices. Look at this chart:

You can see that the stock price in 2006 is around what it is today, and then the wii and ds phenomenons came which resulted in a huge boom in the price of their shares. 

Why are people using this argument when saying that Nintendo is going down, their share prices are simply going back to their normal prices. Yes, they are very low at the moment (9080 yen), but I am sure they will stabilize once again at around 11-14K yen which is perfectly fine. 

 

Anyways discuss here.