If you use Pachter's analysis to determine whether or not to buy stock, it seems solid. The price for 7974 has crashed from its insane highs of several years ago. It is in an industry that is under threats from other technologies. And it does not pay a divided. (Much better than his $44 target price for Facebook (currently $27.85, having recovered somewhat after falling to $17.55 from a brief launch high of $45).
[Of course, the stock market is bonkers. LinkedIn has a higher market cap than Nintendo or Sony.]
Given the state of the industry though, a similar warning should be in place for almost every company.
Also, Pachter uses a double-standard for Nintendo. Other companies can use "razor and blade" -- but Nintendo (which produces a far greater share of the top selling software on its own systems than Microsoft or Sony) cannot. He gets some facts wrong* (unless he has updated, inside information regarding the ownership structure compared to the September 2012 Nintendo filing). He does not understand Japanese business.
Worst of all, he is acting as if he is right and everyone else is an idiot.
 I am Mario.I like to jump around, and would lead a fairly serene and aimless existence if it weren't for my friends always getting into trouble. I love to help out, even when it puts me at risk. I seem to make friends with people who just can't stay out of trouble. Wii Friend Code: 1624 6601 1126 1492 NNID: Mike_INTV |
