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Forums - Nintendo Discussion - Nintendo is about to become a more valuable company than Sony.

jstam said:
Dolla Dolla said:
tiachopvutru said:

@Dolla Dolla: what is QFT an abbreviation of?


Quoted For Truth.

Enjoy the wrinkle on your brain, my friend


 haha i thought it was Quite F@#$ing True, hrmm 


Really?  Hmmm, I always though it meant quit F-ing talking for some reason....quoted for truth makes more sense though lol =).



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tiachopvutru said:
RolStoppable said:
What do you guys expect from a 14-year-old boy who is a hopeless sony fanboy? He doesn't even know the difference between sold and shipped. (information based on reading through leo-j's posting history)

It gives me a chuckle ItsaMii is preferring him as a person who never reads about economy and you saying that he's a 14 year old boy when I'm the same in both cases, though I'm not a Sony fanboy (I support Nintendo however and still can't decide whether I'm a Nintendo fanboy or not). Anyway, I'm not saying that you are saying that to me, and those 2 comments are true to a lot of people as well, only that it's kinda funny


you will never be one if you have to think about it, as we all no.. fanboys dont think



leo-j said:
Are you people crazy? NINTENDO IS ONLY GAMING, EVEN IF SONY KOSSES 10 BILIION US DOLLARS AND NINTENDO GAING DOUBLE OF WHAT SONY LOST, SONY WOULD STILL BE EXTREEMLY MORE WEALTHIER THAN NINTENDO. Just because they are loosing a couple of millions on the ps3 system doesnt mean anything for them. They have more money that microsoft for fist off and nintendo doesnt even have half of the money sony has made in gaming alone. Sony is the top electronics cmpany MICROSOFT AND NINTENDO COMBINED would only have half of the mony sony currently holds.

 I love leo-j. Seriously. This man knows his stuff.



http://i14.photobucket.com/albums/a324/Arkives/Disccopy.jpg%5B/IMG%5D">http://i14.photobucket.com/albums/a324/Arkives/Disccopy.jpg%5B/IMG%5D">

Well, I like to look up claims such as that. What Leo-J said.

Anyway, Fiscal year 2006, reported on Balance sheets (MSN money for source)
Nintendo: 824 billion yen
Sony: 756 Billion Yen
Microsoft: 6.5 billion dollars.

Sony Actually has less recorded money and liquid assets than Nintendo. Of course, investors may look at that and say that Sony is actually applying their money better, but I loathe the stock market and investors.

I'd also say Nintendo's stock is severely overvalued, but I havn't looked at shares outstanding, assets and ratios. All I wish is that I had invested in the 3rd year of the Gamecube and kept pumping it like it was a hooker paid by the minute.



See Ya George.

"He did not die - He passed Away"

At least following a comedians own jokes makes his death easier.

For reference:

Nintendo's PE is around 35.

Sony's PE is around 55.

Read my Apple story when it comes to being overvalued. People have been saying it's been overvalued since it was in the mid 20's and one stock split ago. So through the last $220 increase roughly, people have been saying it's overvalued.



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RolStoppable said:
What do you guys expect from a 14-year-old boy who is a hopeless sony fanboy? He doesn't even know the difference between sold and shipped. (information based on reading through leo-j's posting history)

I was a nintendo fanboy but buying a ds really dissapointed me. When I bought a psp I became a sony supporter. Not fanboy. But not getting off topic,I really doubt that nintendo would become a "more" valuable company than sony(by valuable I mean in terms of financial status).



 

mM

Really, for your own sake don't comment on something you don't have a clue about. If you've never read a financial report, you should not comment on a company's finances. It would be like commenting on video games without ever having played video games.



at this point, what is the potential upside of Nintendo?  if Wii and DS are the only products, its profits might hit a peak sometime next year, when it's easy to assume the DS and the Wii reaches an equilibrium sales level worldwide.

give nintendo another 50% profit increase, the p/e would be in the low 20's, which is more than reasonable, for the leading company in a growing industry.  but... is that all?

i'll be following nintendo very closely over the next year or so; hopefully there'll be news that convinces me that this company knows how to keep generating new sources of revenue.

most people believe the yen is undervalued, and it's part of the reason nintendo's stock is riding high.  this is another risk.  US investors are partially hedged against this... nintendo uses 1$ = 115 yen in its earnings estimate apparently.  right now think it's at 123 yen.  (the weaker the yen the better it is for nintendo's bottom line.)

however, i'm confident that nintendo has a grand Wii strategy that we haven't seen yet, thus i'm holding onto to my NTDOY tightly; multiples of in the 30s really isn't so bad at all.

another reason to hold onto it: with like $7 bln in cash, nintendo could issue a special dividend.  paying out say $3 bln would be more than 5% of nintendo's market value, no small amount. 

 



the Wii is an epidemic.

A number of things could drive the price higher.

As we know record profits. Last fiscal year, they had to contend with launch costs for the Wii. They only received revenue for the Wii for 1.5 quarters - many launch costs. This year the DS looks to perform just as well if not better than last year. PLUS they will receive a full year of Wii growth and revenue in both hardware and more importantly high-margin software.

A move to a major exchange like NYSE or NASDAQ. In the USA, NTDOY trades on pinksheets which sucks. Most investors have never traded anything on pinksheets. In addition, a stock split is likely on the Japanese exchange.

Nintendo has money and clout right now. This could be used to purchase companies or sign a deal with a company like Apple. I think that their IP is worth many billions in pure profit should they enter the mobile phone space. 

As for a dividend, Nintendo already gives a 1.9% dividend which is ginormous for the tech industry.



FishyJoe said:
Really, for your own sake don't comment on something you don't have a clue about. If you've never read a financial report, you should not comment on a company's finances. It would be like commenting on video games without ever having played video games.

Sounds kinda like some "professional" video game analysts. :P