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Forums - Nintendo - Nintendo is profitable again. 220 million in Q2, 4.5 billion in the bank (Excluding assets?)

gj Nintendo you are an inspiration to me, my friends and everyone else around me



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aikohualda said:
SwooshX said:
Keeping $20 billion in cash just sitting there would be fairly stupid. A person who has $2 million in cash doesn't just let it sit in the bank account either. You invest it.

having a cash reserve is not fairly stupid... money is the most liquid in the company.... if something happens... let's say gaming world crumble in the next 3 years... nintendo would be easier to reinvent themselves using an actual money unlike... selling your investment to a lower value (most of the time)

Having that much of a cash buffer is ridiculous especially for a game-only company. Especially with the stock market way up over the last two years, you're losing money by just letting it sit there. 



AnthonyW86 said:
Wii-U hardware must have become cheaper to manufacture to then, though probably still way to expensive for what it is.


Well the tricky thing about the Wii U for this quarter is Nintendo actually didn't pay for any of the Wii Us this quarter. 

They paid off the manufacturing costs of all the Wii Us they sold this quarter last quarter, so basically they ate a loss on these units last quarter so this quarter they could sell those systems at basically 100% profit. 

So their operating profit is likely artifically inflated for this quarter in some ways, but Nintendo traditionally almost always makes a profit for the holiday quarter anyway. 



SwooshX said:
aikohualda said:
SwooshX said:
Keeping $20 billion in cash just sitting there would be fairly stupid. A person who has $2 million in cash doesn't just let it sit in the bank account either. You invest it.

having a cash reserve is not fairly stupid... money is the most liquid in the company.... if something happens... let's say gaming world crumble in the next 3 years... nintendo would be easier to reinvent themselves using an actual money unlike... selling your investment to a lower value (most of the time)

Having that much of a cash buffer is ridiculous especially for a game-only company. Especially with the stock market way up over the last two years, you're losing money by just letting it sit there. 

who says thats much???? if their total asset is 10 b... you know who doesn't have much cash reserve though? the one who liquidate building to compensate for the lack of liquid cash



 

KLAMarine said:
kowenicki said:
Net tangible assets:

Sony: $9.4bn

Nintendo: $9.7bn

Microsoft: $62.7bn

Sony has less than Nintendo? I always thought Sony was a bigger company than that? Then again, what I understand about corporate finance can fit into a thimble. kowenicki, you seem to know thing or two about this stuff. Did you study accounting or something?


Sony is a waaaay bigger company than Nintendo, it's just that their tangible assets are low because of financial struggles. Their total assets on the other hand are much much higher (150 BN $)



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aikohualda said:
SwooshX said:
aikohualda said:
SwooshX said:
Keeping $20 billion in cash just sitting there would be fairly stupid. A person who has $2 million in cash doesn't just let it sit in the bank account either. You invest it.

having a cash reserve is not fairly stupid... money is the most liquid in the company.... if something happens... let's say gaming world crumble in the next 3 years... nintendo would be easier to reinvent themselves using an actual money unlike... selling your investment to a lower value (most of the time)

Having that much of a cash buffer is ridiculous especially for a game-only company. Especially with the stock market way up over the last two years, you're losing money by just letting it sit there. 

who says thats much???? if their total asset is 10 b... you know who doesn't have much cash reserve though? the one who liquidate building to compensate for the lack of liquid cash

You're talking my comment out of context, I'm not comparing it to Sony. Having a cash buffer for a company is good, but at some point it's an irresponsible use of money to have it just sit there earning nothing when it could be invested in say stocks (which are also fairly liquid, you can liquidize stocks in a few days if you want) and be earning an additional return rather than just sitting there. Especially in a period of time where the stock market has been climbing overall like crazy the last two years. 

Nintendo has a lot of their money tied up in securities too, because they know having it all just in cash makes no sense. But people sometimes don't understand this and think the money in the bank just "dissapeared" when infact it's just been invested somewhere else (ie: Nintendo invested a ton of money into repurchasing shares from Yamauchi's family, that just means that money in the bank transferred into a different form, not that it dissapeared). 



How come when Nintendo annouce profit the stock goes down but when Sony announce loss (year after year) the stock pretty much always goes up?



If it isn't turnbased it isn't worth playing   (mostly)

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For Thee, my Lord, for Thee. Power hath descended forth from Thy hand, That our feet may swiftly carry out Thy command. So we shall flow a river forth to Thee And teeming with souls shall it ever be. In Nomine Patris, et Filii, et Spiritūs Sancti. -----The Boondock Saints

Naum said:
How come when Nintendo annouce profit the stock goes down but when Sony announce loss (year after year) the stock pretty much always goes up?


The stock went up with the original announcemente of the profits, the sudden fall in stock value, was most probably caused because of a bad reception of the first part of the QoL platform, since it does seems quite useless and a bad invesment, if it weren't for that the stock most probably would had gone up once more today.



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-1 = Negabeasting. -5= NegaRampage. -10 = NegaBurst

You're talking my comment out of context, I'm not comparing it to Sony. Having a cash buffer for a company is good, but at some point it's an irresponsible use of money to have it just sit there earning nothing when it could be invested in say stocks (which are also fairly liquid, you can liquidize stocks in a few days if you want) and be earning an additional return rather than just sitting there. Especially in a period of time where the stock market has been climbing overall like crazy the last two years. 

Nintendo has a lot of their money tied up in securities too, because they know having it all just in cash makes no sense. But people sometimes don't understand this and think the money in the bank just "dissapeared" when infact it's just been invested somewhere else (ie: Nintendo invested a ton of money into repurchasing shares from Yamauchi's family, that just means that money in the bank transferred into a different form, not that it dissapeared). 


how sure are we that that is their reserve money for sure?

i mean if it is 4.6 billion dollars then yes you are right but they are talking about yen right? 36 million dollars???? 

 

 

edit found the article...

 

it says dollars.... that is too much you are right... but i think this is not very accurate

it says..

 Nintendo currently has $4.5 billion in the bank and $9.67 billion in assets

so their buildings and ips are only worth 5 bil???? weird...



 

Naum said:
How come when Nintendo annouce profit the stock goes down but when Sony announce loss (year after year) the stock pretty much always goes up?


I believe the stock initially spiked upwards after the earnings report, but that probably caused a sell off, as you want to sell when the stock is high if you're planning to get out of the stock. 

Then it dropped back down.