It's amazing to see the only Japanese company that has actually
increased profits this year is taking the biggest hit. Stock is down 32% YTD with a P/E of 10. Nikkei is up 5%, SNE (Sony) which has been losing money on every division of their company is up 24% YTD. I think this will be my last Japanese stock I will ever own. It seems the Japanese like to punish companies that actually succeed.
And Satoru Iwata should start keeping his mouth shut already, it almost seems like he is more pessimistic about his own company than any analyst out there since the dawn of the Wii. It's like the guy is hoping to fail.
I thought this article was interesting: http://kotaku.com/5261412/nintendos-e3-promises-one-year-later
Here at the crossroads between the excitement of the new game platform and the coming holiday season, it may be worth a read.
Check the share restrictions here: http://www.tse.or.jp/english/index.html Trading unit is often 1, unlike Nintendo's 100. The stocks are numbered (Nintendo is 7974) and advancing share price is shown in red, while declining is shown in green.
Why won't Nintendo sponsor shares on foreign exchanges? I don't see the benefit to Nintendo shareholders. How about taking some of the 9 billion they have in the bank and buying back shares? Interest rates in Japan are close to zero, while the dividend is close to 5%. Technically Nintendo should borrow money to buy back shares! Someone is accumulating shares at 25000.
Masamoto Yashiro is keeping the magic going.
Althought they make conservative earning projections, they did not bother to hedge the dollar. What is the point in being conservative if they leave themselves uncovered?
They have hit products, but they take 3 years to ramp up to meet demand. What is the point of ramping up after three years of product shortages? Either ramp up, or run under demand. Don't fool around for three years and then get half serious.
They open new markets, but how do noobs find out about on-line games? Tetrus, World of Goo, sure they can be downloaded, but my wife has no way to find out about these games on her own because Nintendo has not opened new advertising fronts.
How about using the Wii as an video controller? Think they will make an agreement with Netflix? Think will let the Wii play DVD?
What about requiring an investor in Japan to buy the equivalent of 800 shares of NTDOY to invest in Nintendo? how many small investors does that lock out?
Still I think the shares are finally a buy.