TheLastStarFighter said:
ShinMitsugi said:
Man. Allow sombody with an MBA to step in here. First of all, depending on where Nintendo manufactures its goods, a weakening yen could greatly increase the cost of importing parts from foreign countries for manufacturing. If the manufacturing is done in Japan, this would be the case as they'd have to import parts from countries like Taiwan with a weaker Japanese yen.
In addition, a weaker yen makes it more difficult for Nintendo to cover ANY liabilities that it holds in foreign currencies. I imagine this is at least a fair percent of its overall debts, but I'm not completely sure.
Further still, Nintendo stock is near its 52 week low of 11.36 at a current price of 13.89 (http://finance.yahoo.com/q?s=NTDOY&ql=0). This is quite low considering that the stock is on an exchange that is currently at an ALL TIME HISTORICAL high. Also, the Nikkei is very high. Usually this type of positive investment sentiment would pull up the price of most stocks but securities that have a poor public sentiment, such as Nintendo, often don't benefit because peple are reluctant to buy them.
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Oh my. You need to go back to school, or at least the school of humility, because you are talking about something you know nothing about. Keeping it simple for you, Nintendo has almost no liabilities. It has 10 billion in the bank. And while currency fluctuations have various pros and cons, for Nintendo we can make the blanket statement that a weak yen vs high dollar is a very, very good thing. In this case it is fair for us to generalize that the US is essentially a market to sell a product. 40% of its product. Nintendo's R&D is all in Japan. All of its software design. Hardware design. Financials are reported in Yen.
Regardless, external situations have made a positive turn for Nintendo, and the markets have responded. It is still undervalued greatly, but a 13% gain in a week is a good thing. I hope your MBA at least can tell you that much.
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had. nintendo had 10B in the bank. that dropped to around 6B last year (based on exchange rates at the time) and we'll find out soon here how much they actually have. but whatever it is it is not 10B anymore.
http://www.nintendo.co.jp/ir/pdf/2012/120426e.pdf
