Is there something is the earnings report I missed? The profits were well above any of the estimates.
They didn't raise guidance, but anyone with half a brain knows that Nintendo is ultra conservative.
I really don't get it. The stock is already cheap factoring growth and earnings.
The presentation was very sad wasn't it? All those clueless managers riding on Nintendo genius Miyamoto's back. Congratulating themselves as they hand another big holiday season to eBay Wii scalpers.
The shares may have sold off because the Xbox and Wii are almost the same price now. I don't think it is a problem for Nintendo, but just looking at the specs may have convinced some *fund manager* that Nintendo will have to slash prices to fight off MSFT.
I really don't understand. I've never seen a company report such good results and get punished so much for it. It's like people don't even notice they completely blew by every estimate.
However other companies that report rotten earnings, lower their guidance, and paint a bleak picture for the future barely get touched.
Now I know why the Japanese market does so poorly, they punish success.
Since Nintendo doesn't plan to release anything new until October, there are alternative investments elsewhere...at the current time.
Stay long if you can't find anywhere else to put your money.
I am not sure but here are just my thoughts.
Slower growth in DS?
Guidance was not good enough?
This is kind of like Gamestop in the shorts rule! What I mean is that any pop or uptick is the shorts getting squeezed. Once we get that pop, more shorts or the ones that had already covered their positions come back in. You can buy here and sell somewhere between $68 and $72.