The Price of nintendos stock seems unfairly beaten down. Nintendo is outselling its competitors in both the home console market and the portables. why is it that nintendos stock is pushing 55 dollars a share? Personally i think its market worries. In a recession nintendos proved that people will still buy wiis and do it by a large margin over its two competitors. 

 

Thoughts?

In a bear market the good, the bad and the ugly all go down.  Like you said...it appears to be pretty beaten up right now and could have a technical rally back to the 50 day moving average.  I don't expect the long term trend to change from it's downward move for quite some time.  That doesn't mean you can't trade it... just realize any rallies it has are all most likely just temporary countertrend moves.

by quite sometime you mean what? until the recession is over?

the stock even has a 4.72 dividend

Chrisr84:

by quite sometime you mean what? until the recession is over?

 

I can't say for how long but judging by the amount of head winds it is going to encounter it could be from a few months to several years.

 

Click on the link to see the article regarding consumers.

I have decided to just sit out for a little bit. I do believe in nintendo but if every day it seems to be erasing gains from previous day's closing i do not think its bottomed in the short term.

jackg1606:

Chrisr84:

by quite sometime you mean what? until the recession is over?

 

I can't say for how long but judging by the amount of head winds it is going to encounter it could be from a few months to several years.

 

Click on the link to see the article regarding consumers.

Looks like you were wrong! I am sorry but that felt gooooooooood! i called etrade immediately when my friend called. quic k 5% BAM

Interestingly Nintendo raised its full-year earnings outlook by 26% last night noting stronger than expected WII and DS sales (WII sales forecasted to be up 42%).  Thus the significant runup today.

 

U.S. personal incomes fell and so did consumer spending, to boot.  It will be interesting to see how this affects WII sales.   Maybe Americans used their tax rebates poorly and bought a WII, which Nintendo may not have forecasted before.   But the economy is not out of the woods.  Rebate checks have run their course... rising prices, rising unemployment, rising consumer debt are pinching American families.  The rebate checks buoyed the economy, but without them, what can we expect as the holidays near?

 

Hopefully Nintendo will hit their new target.  It will be interesting to see what happens.

 

Good luck.

The wii is the least expensive system and in a recession will be the most bought. who the heck is going to spend 1500 on a new tv to play a ps3 or an xbox 360? who is going to buy a ps3 and play it on an sdtv? not many! the ps3 is bought a lot of the times because of its bluray player which is for hdtv and you wouldnmt see a difference between dvd and bluray without one. I do not see them forcasting a number that they cant beat. that would be very very stupid and not stock friendly. nintendo has raised their expectations before and beaten them. this is one stock im going to keep at least a small part of for a long time. it even has a decent dividend! bought in today for 58 and already made a decent gain.

Console buyers are rather irrational.
They buy more Gameboys when...
Tetris is pretty much the only good game out for it
They change the color of the Game boy
They slim it down and increase the contrast
They add color and change nothing else.
They make it a clamshell
They make it a touchpad
They make it plug directly into your central nervous system (trust you me on this one. everything will interface with us)

Including all of its iterations the Gameboy pretty much kicked the ass of every single other handheld on the planet for a decade.

They're lucky the Game Gear sucked up batteries
The Wonderswan never caught on
That wack thing you could play genesis games on was freakin weird
The memory of the Virtual Boy's mere existance is mostly erased from people's minds (retnal damage not included in diagnosis)
The PSP just sucks

The industry is definitely hard on its participants but Nintendo has a decent head on its shoulders (even if I did only ever like the original Gameboy, NES, SNES, and N64, because their new stuff can rot and die for all I care).

I don't think anyone's expecting Nintendo to evaporate anytime in our lifetimes.

The point is out of all 3 companies nintendo is the one making the largest profits. The DS rules the handheld market and the wii rules the home console market. the virtual console is very popular and now that they have a section for original creations its only getting more popular. I think its safe to say that the wii will continue to sell through the recession beating the other two by a mile. after feb 2009 with the new digital only broadcasting in the usa i think the ps3 will pick up a lot more share as most people dont understand that if you have cable youre already digital. with new tvs comes new hd tv  owners which will want the ps3 for gaming and its bluray player. The ps3 will eventually pull into second place in the console sales as soon as the whole hdtv buying crazy occurs

Chrisr84:

The wii is the least expensive system and in a recession will be the most bought. who the heck is going to spend 1500 on a new tv to play a ps3 or an xbox 360? who is going to buy a ps3 and play it on an sdtv? not many! the ps3 is bought a lot of the times because of its bluray player which is for hdtv and you wouldnmt see a difference between dvd and bluray without one. I do not see them forcasting a number that they cant beat. that would be very very stupid and not stock friendly. nintendo has raised their expectations before and beaten them. this is one stock im going to keep at least a small part of for a long time. it even has a decent dividend! bought in today for 58 and already made a decent gain.

 

True.  What's interesting is that in a sane world, given the current US and now European economies, Nintendo should be doing worse than they are.  They positioned themselves perfectly in the market.  No, they wouldn't raise estimates if they didn't think they can hit their targets, I didn't mean to portray that.  Again, what fascinates me is the illogical divergence of the macro and micro environment.  But, we live in an illogical world.

 

Good luck on your investment.

games are at LEAST 10 dollars cheaper than their competition and the price of the system is only 250 dollars. video games are the least or among the least expensive forms of entertainment out there right now. Lets say come xmas who do you think the parents are going to pick a 250 dollar system that has fewer M-rated games or a system that costs a lot more? I am not dismissing your argument about people having less money=less sales but you cant just say less sales for nintendo. I think videogames as a whole may actually rise in sales but if they dont it wont be nintendo whose hurting. I think parents will look for value and cut back on xbox 360 and PS3 and buy more wii's and wii games.