I can't seem to find any reference to the downgrade you're referring to. Zacks has had considerably positive coverage of Nintendo in the last couple weeks.
Yen to Dollar fluctuations play a factor also. The value of yen has gone up in the past couple days compared to the dollar. Because of that, the US based NTDOY will lose value in the short term.
Bad timing for sure on those guys parts. But there isn't any way that these levels are sustainable. Just another bubble waiting to pop similar to Feb 2009. The only question is when?
Similar mid-day upward action today. With any luck, the 5 year low we've been toying with during the past week will prove to be behind us.
This is one of the widest swings I've ever seen for NTDOY in a single trading day. Any justification for this recovery?
Yen value dropped big today. It's now at four year low compared to the Dollar and Euro. That's a big factor, but this jumped even more than most would have expected on that reason alone, so there could be something else behind the scenes we're not seeing. This is the single biggest percentage day gain in years. Hopefully we can continue this trend.
Very unusual activity for NTDOY especially on little news. What gives?
Fantastic Post. Truly informative and not just some puff piece or some doom and gloom vision as we have been seeing recently on the board. I also agree with the short term = grim and long term = optimistic outlook. I think the life cycles for video game systems in general have changed considerably from the days of the first Wii Launch. Right now we are nearly 2 years since the original launch of the 3DS, and only now has Nintendo begun its push out some Major system movers coming up later this year (Pokemon X and Y is a near-guaranteed sell out). So it really should be no surprise if the Wii U experiences a similar life cycle where it won't baring fruit until years down the road. Patience is the key.
On much higher volume than usual. That almost never happens. Any known cause?
Yeah, no kidding. I checked the IGN article talking about the pokemon release (only 8 hours old) and it has over 1000 comments from fans going absolutely nuts about this announcement. This does appear to be some seriously good news for Nintendo.
I understand the frustration. I'm right there with you. This is a rough patch, and I am far from convinced that the next earning report is going to turn the stock around in the short term. Still though, I remain very optimistic about the longer term.
Given that Nintendo lately has been releasing their consoles with a sparse software lineup, we've seen a longer periods of time required for the market to really take hold and embrace the product. This may explain why Nintendo chose to minimize their marketing blitz this time around and instead simply release it as a tech demo and let the product market itself while giving it plenty of time to work out the kinks and develop new software.
We've seen this happen before. Track the history of the original DS. It sold a relatively modest 14 million units in its first year, after 3 years it averaged 25-35 mil sales per year over a stretch from 2006-2011 and it now remains the highest selling hand-held game console of all time during a period where all of the fanfare and hype was surrounding the home based systems.
Anyways, CES is happening now and Nintendo is showcasing their new Pokemon games (A franchise absolutely beloved by its fanbase ) on the 3ds for the first time, and couple that with the fact that 3ds has just started accelerating their sale numbers similar to how DS did during its early years, it's not hard to foresee this as the beginning of another golden age for Nintendo. Just need a whole lot of patience to get to that point.
If it's any consolation, there has to be a bottom somewhere. And if it goes low enough, they will eventually become a ripe candidate for a buyout. Nintendo has way too much brand awareness and timeless franchises to be left to flounder in the single digits. Somebody somewhere would have to see it as a deal that's too good to pass up.
Thanks for clearing that up. I was not fully aware of that correlation between 7974 and ntdoy. It always seemed to me in the past while checking both that whatever percentage up or down 7974 was the night before roughly translated in the percentage movement of NTDOY the next day.
7974 is NTDOY and NTDOY is 7974. If 7974 finished even overnight before good news was baked in, then using that logic at worst we should be even on Ntdoy or possibly even up since NTDOY can be considered a future indicator. Instead we are down close to 4% How does that make any sense at all?
It literally makes no sense. Nintendo stock on the tokyo stock exchange jp: 7974 wasn't even down over the past night. What the #$%$ is going on here?
Simply google "7974 jp" check the Bloomberg ticker. It starts around 7pm est. And indicates what NTDOY will do the next day.