This isn't surprising at all. I bought at 12.80 and got out last week making a nice 60% gain. When it jumped 10% I decided to take profits (unfortunatly triggering short term capital gains when I was only a week or so away from long-term) as it seemed obvious it would at best revert and give that 10% back. Nintendo shares always seem to over-react both to positive news and negative news. Too bad I don't have a way to buy and sell options on it.
It had to post a loss. I mean they upped advertising which costs $$. They sold more WiiU's which are still at negative contribution. Considering they were already at at operating loss it was bound to happen. That coupled with weakening January made me want to sit out for a bit.
May have to re-enter soon as I think it's near its floor but I may wait to see if the 3DS continues to weaken without WiiU picking up the pace. May go down to $11/12 again. At that level it's an absolute steal even with poor management. As another poster said you are basically buying cash at that point. Their IPs alone are worth billions. Even when doing horribly, like now, they still tend to be free cash flow positive and tread water. As long as they don't start flushing money like Microsoft and Nintendo do chasing market share then they are a pretty safe bet.
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