NTDOY closed at $47.40!

[bdbdbd]

FishyJoe said:

The guy from Credit Suisse is the definition of clueless/crooked analyst. By every objective measure Nintendo is already far, far, far above industry returns. Total profit, profit margin, ROI, profit per employee, all are above industry averages. Yet this scammer is claiming it will only perform even to industry average. 

http://online.wsj.com/article/SB118349346065256972.html?mod=googlenews_wsj

"It's the valuations really....It's quite pricey," said Jay Defibaugh, an industry analyst with Credit Suisse, who calculates that Nintendo is trading at roughly 25 times expected earnings for this business year. By contrast, Sony is trading at about 19 times expected earnings. Mr. Defibaugh has a "neutral" rating on Nintendo, meaning he expects the total return to be in line with the industry over the next 12 months.

Credit Suisse's rating on Sony is "outperform," meaning the stock's total return is expected to exceed the industry average by at least 10% to 15% over the next 12 months. Credit Suisse said it expects to receive or intends to seek investment-banking-related compensation from Nintendo within the next three months.

 

 

I believe that the analysist is expecting companies in the industry to make more profit in general within the next 12 months. The generation change is currently going and only few companies have made decent profit with current generation, most of the companies start to make profit in the next 12 months (mostly the ones, that have invested in the PS3), but the analysist may not have noticed, that because of large and growing installbase of Wii and DS, Nintendo makes profit each game sold for those platforms, while PS2 continously gets less games constantly. Anyway, Nintendo will make investments, which you count out from the overall profit. And Sony works also in other industries than gaming, so it may have a better profit margin in electronics in general, than average.