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Nintendo Co. Ltd. Message Board

tambourine_man_43326 3 posts  |  Last Activity: Jul 30, 2014 12:46 PM Member since: Mar 20, 2002
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  • tambourine_man_43326 by tambourine_man_43326 Jul 30, 2014 12:46 PM Flag

    I am a shareholder of this company and I, along with most of the people that follow this stock, think that a share buy back would be great for the share price and shareholders. At least holders of the ADS's. The Chinese owners (Mr. Hong) do not own the ADS' s they own ordinary shares that are not traded on a puplic market, yet in the fillings you see that the shares that were "awarded" at $1.5 per regular share ($7 per ADS) were all sold in private transactions after they were awarded. This tells me that the ADS price has no bearing on the private party value in China. So that begs the question how is it Mr. Hong's personal interest to buyback shares? Take the most recent dividend. They paid out lets say $5M for simplicity ($3M or so went directly to Mr. Hong). At 1.5 a share they could have bought back 3.33M shares or almost half of the 7M share float with that $5M. This would have been good for all of us, we would probably see much higher price per share, but how would this benefit Mr. Hong? Would his private party shares be worth more? No probably not. I could see them doing a share buy back of private shares which of course would be higher than $1.5 for four, and would likely only benefit Mr. Hong because it would do nothing to support the ADS price other than increasing EPS per share which seems to be ignored with this company anyways.

    I think a similar thought process is applicable to the idea of liquidating the company and paying out shareholders. There are people willing to pay book value for this company in China, and Mr. Hong is able to have the company guarantee personal loans for him (its in the filing) so why would he give up his control and access to capital so that we can profit? It seems good on paper, but then when you start thinking about rational self interest of the majority owner and the lack of shareholder rights in China especially foreign shareholders it just seems it won't happen.

  • Reply to

    Confidence from Dividend Payment

    by smkros Jun 27, 2014 1:00 PM
    tambourine_man_43326 tambourine_man_43326 Jul 1, 2014 10:15 AM Flag

    Share buybacks and continued dividends? Seems logical enough. Instead we are going to see if they judged the market for leather goods and accessories well. Operating all company owned stores for the new leather stores will either be a huge boost or a huge drag. We will see.

  • Reply to

    Special Dividend - perhaps a reason for it ?

    by mchlr963 Jun 27, 2014 1:11 PM
    tambourine_man_43326 tambourine_man_43326 Jun 30, 2014 1:44 PM Flag

    Interesting theory. I don't think short interest had anything to do with the dividend payment though. There were only 15k shares short when they announced the dividend. In the last year short interest has only been above 20k shares once. So it seems next to no one is shorting this stock, just avoiding it. As of 6/13 there were 3k shares short, so less than $6K and like 1/4 of a days volume.

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