Stock is probably going to drop a lot more....

One of the thing stockholders really hate is when companies miss their projections for the fiscal year and it is looking less and likely that Nintendo will make their 2009 fiscal year target....


The advantage Microsoft and Sony have is that they can miss their target in their gaming division, as long as the overall projections for the company as a whole are met the stock price won't move so much.........

Considering how toothless most boards of directors are (and I bet that what little nerve Nintendo's had was beaten out of them decades ago by Yamauchi's pimp hand), I don't think there's even that risk anymore.

NINTENDO IS DOOMED! Don't you guys just love it? I mean most of the people who are acting this way seem to be sony fans, yes I say sony fans because it is the same people who were all over ps3 slim.

Seriously are you guys for real, I mean nintendo has yet to use any aces when it comes hardware image. (I do not count the black wii as it was temp)

Nintendo has yet to even announce a price drop. I honestly hope the people who are saying Nintendo house is falling remember aren't the same people who complained about the ps3 is doomed threads awhile back.

Anyways I'm out. Sorry for any grammatical errors, or errors in general, I usually reread what I write.

Weirdly enough the amount of cash you have matters less than how well you do reaching your projections....( of course being strapped for cash with little access to credit ain't good either....)

Lets say you make 2 billion $ profit and target 2.5 billion$ for the next year and only make 1.8 billion. Your stock is going to take a dive...

Now lets say you are loosing 500 million$ and target to loose only 200 million$ and make your target, your stock price is actually going to increase...

The main reason being that how much cash you have and what level of profit you make is already factored in the price of the stock and the stock mainly moves based on how well you stay on track and what the projections for the future are....

Investors react very badly to bad surprises/bad news too...( which is why if it doesn't look like Nintendo will hit their fiscal year 2009 targets they will probably try to announce it in advance and reset a new target).

This is more relevant for all of the top Japanese companies, as if you read the article, other major companies like Honda are being hit too. It's pretty simple, and works for the US too - When the Yen or Dollar are strong, the stocks sink. As someone who keeps an eye on the market on a regular basis, the Yen is trading pretty high, where the Dollar is not.

In the US, stocks are gaining rapidly due to the weak dollar, but in Japan stocks are sinking due to the high Yen. The most obvious companies are the ones in the top 5 in their respective countries. Sony might pare off small gains here and there, as their stock was valued quite lower than Nintendo's or Honda's.

Granted, recent news on PS3 pricecuts may boost Sony value too. That said, Nintendo's stock fluctuation is more based on the Yen moreso than anyone jumping ship on their stocks.

@acevil, correct and lets be serious about NPD, next month we will see the real effect from WSR. In October ,when everything normalizes, the real effect will be seen.

" Despite a seemingly strong positive reaction from the industry following Sony's long-awaited announcement of a price cut for the PlayStation 3 - and the impending launch of the PS3 Slim - shares in the Corporation continued to fall yesterday, continuing a steady descent from their two-month peak at the beginning of last week."

http://www.gamesindustry.biz/articles/ps3-announcements-fail-to-halt-sony-stock-slide

I guess my question wasn't clear enough. I'm not asking what consequences cash holdings, profits and projections have on the stock price, I'm asking what consequences a low stock price has for a company which has no need for investor capital.

I appreciate the response, though.

I stand corrected. Then the initial argument of a high Yen value in Japan is affecting them also.

Not just Nintendo, several Japanese companies (including Sony).

Strong yen, weak dollar can do amazing things.

Of course the recession has nothing to do with it either...