TheLastStarFighter on 10 September 2013
| Asriel said: As one of the financial analysts pointed out, Nintendo's stock became over-valued due to incorrect speculation that they would be listed on the Nikkei. Now that the speculative bubble has burst, the stock has fallen in line with the market's reaction. I don't really see what the huge deal is. |
Actually, the stock is vastly undervalued because at current prices the cap value is essentially only the same as the combined physical assets and cash reserves of the company. Current share prices give $0 value to the Nintendo-owned brands like Mario, Zelda, Pokemon, etc, to the back-catelog of classic games, or to the software development resources and staff the company posesses. Nintendo should be priced higher for its brand value alone, which is why it is probably a good buy at this time. At minimum its total value should be in the $20's per share. If they start making larger profits again, I would expect the shares to go to that level or beyond. And this is assuming Wii U comes no where close to being a Wii-like hit.
