| cusman said: I am still holding my 50 or so Nintendo shares I bought when they were near the $70 price point... am I foolish to hope they will ever recover to that level? Hey I am relatively young and willing to wait... |
A fundamental pricipal to hold close when investing is that once money is spent, it is spent. That transaction is over. In other words, it doesn't matter if it will ever reach $70 again, other than for the boost to your ego. You need to forget the price you purchased for.
Now, what you focus on is that you have 50 shares today that are worth just under $14. Are they going to be worth more or less than $14, and if so, when? My own opinion is that they will definitely be worth more. Hell, they were over $18 a few months ago. Whether Nintendo will once again reach Wii/DS level revenues is debatable, but it is fairly certain (to me) that they will be in better shape than they are today. Even at Gamecube/GBA levels they typically turned billion dollar profits. If WiiU flops, Nintendo could also sell their product on other platforms if needed, which would create a lot of buzz in the markets.
My personal thought is that the value is going to grow now until the end of March. If you own shares on March 30 you will receive a dividend. After March 30 their may be a slight dip, and then growth again leading to their annual financial statements. I think those statements will reveal much worse than forcasted sales but still a return to profit thanks to the falling yen. Nintendo will then forcast a large profit for the coming year. The small profit plus the forcasted large profit will drive up the value of shares to levels in excess of $20 by the end of the year.
So if I were you I would keep your shares till then if you're not in a rush. Don't expect $70, but I would expect more than $14. If Nintendo has a major success this fall, $30-40 shares may happen, but I'm not counting on it.
I should also make it clear that I am not giving you professional investing advice here. Just stating my opinion.
