Readykilowatt
Regular
Amazing.
Nintendo's market capitalisation is now over $53 billion.
- Thread starter Readykilowatt
- Start date
Amazing.
Anyone feel that Nintendo is really investing much more in mainstream advertising and marketing than in the recent past.
I was just at a grand opening for a Future Shop near where I live and Nintendo had a tent set up right next to the doors for people to play the Wii. The others were nowhere to be seen expect in their usual spots in side.
I guess this is where some of that extra money is going.
This is great news,but I would to see them take some of that money and make a much greater investment in game development.
I was just at a grand opening for a Future Shop near where I live and Nintendo had a tent set up right next to the doors for people to play the Wii. The others were nowhere to be seen expect in their usual spots in side.
I guess this is where some of that extra money is going.
This is great news,but I would to see them take some of that money and make a much greater investment in game development.
Sony should get out of the console hardware business and go software-only. 
Blade47167
Newcomer
Sony should get out of the console hardware business and go software-only.
Whys that? I just love how all you people just a console with 2 of the highest selling previous generations ever in the first year of its life.
Blade47167
Newcomer
judge*, how do you edit posts btw? Sorry for the double.
thatdude90210
Regular
I think he's making fun of people who, in the past few years, were saying that about Nintendo.
DudeMiester
Regular
Yeah, but don't Sony and Nintendo have listings in other exchanges? A quick check shows that Sony has an additional $52.5 billion market cap on the NYSE, whereas Nintendo has only an extra $6.5 billion on NASDAQ. If you add that up, it puts Sony far ahead. After all, Sony is much more than a gaming company.
Then again, maybe I've misunderstood.
Then again, maybe I've misunderstood.
I believe the entire SONY Corporaton is valued at around $60 billion. Anyway I would like to see Nintendo diversify into other markets like consumer electronics and computers like Apple has. It would be pretty sweet if you could install a computer OS on the Wii with a USB HDD...actually that might not be a good idea since it only has 88MB of RAM.
tongue_of_colicab
Veteran
88mb would be more than enough for just a basic OS with lets say a browser, movieplayer, text editor and basic stuff like that. Win98 could run those things fine on a 350Mhz p2 with 32mb ram, so Wii can do that too.
inefficient
Veteran
When you buy SNE (ADR) on the NYSE, you are buying 6758 on the TSE.
The value of an ADR is backed by the underlying value of the foreign company's shares on their home exchange.
What if your PPC isn't going to DGS or MBA?
Share valuation of technology company usually reflect growth prospect. Investors apparently think either that Nintendo can grow the gaming market or will go beyond it. The bet, I think, is on the Wii becoming more than just a gaming device. One of the main challenges of introducin technology into the livingroom is the control mechanism. Regular remote controls don't scale well--you end up with too many buttons. Keyboard and mouse don't really work in the settings. The Wii-remote could potentially become the input device of choice for the livingroom, the same way the mouse become an inalienable part of desktop computer. Many possibilities exist for the DS too...
Value(utlities, large firms) beats growth(technology & telecoms), this is an empirical fact of the stock market.
Technology companies are grossly over valued, analysts have attached implied growth rates which are highly unsustainable (many times that of GDP is not rational).
Whether you're using implied price from PE, discounted cash flow, capitalised earnings or even real options the growth rates used for technology companies are usually extreme.
Nintendo's current valuation is a case in point. The market is not efficient (efficient market hypothesis)
EMH by Fama 1970: If markets are efficient prices fully and instantly reflect information, competition between traders insures reaction is instant and unbiased i.e. prices reflect true value.
The greatest proponent against the efficient market hypothesis? Warren Buffet who famously said that "if markets were efficient, I'd be a tramp on the street" (paraphrased).
Your also forgetting that this theorem needs a perfect market. Meaning no trading cost, no additional loan cost after interest, and same loan rate for private persons and companies, and no bankcrupcy costs, according to the M&M Theorems.
Anyways, with stocks you are paying for potential 90% of the time with technology firms.
Last edited by a moderator:
Then it goes from OMG to BBQ, trust me.
I just sold my NTDOY stock at $46.10. Once Nintendo passed Sony's valuation on the TSE, there began a process of massive profit taking. It's already down 2.5-3% since it hit the high on Sunday Night (US EST)/Monday Morning (JAP). The ADR thankfully still has an upward movement so I got out.
I think the stock will retrench in the face of that resistance for a couple of weeks since there's been no news, and then it will begin the upward climb. I'll hop back in again then.
I think the stock will retrench in the face of that resistance for a couple of weeks since there's been no news, and then it will begin the upward climb. I'll hop back in again then.
Oh, I just found this old conversation I had with a friend of mine regarding the Nintendo stock. It was at $34 at the time, and I had just purchased my batch.
Session Start (Me:Him): Tue Feb 06 13:26:01 2007
[13:26:06] Him: not bad at all
[13:26:26] Me: i had an original price target/expectation of $40 by the end of this year
[13:26:35] Me: that would be a 16.6% rise
[13:26:54] Me: that was my conservative estimate. bullish estimate is $50 if they can meet demand with the wii
[13:27:11] Me: which would be 45.8% rise
[13:27:25] Me: so here's hoping
[13:27:59] Him: $40 sounds about right
Session Close (Him): Tue Feb 06 13:32:15 2007
And right now, the stock is very close to my most bullish year end estimate, and at the upper range of the estimates of nearly every analyst. Between the profit taking on the TSE the past couple of days, it being in the upper range of my bullish estimates, and there being no news for the next month or so, I figured now was a good time to sell out of the ADR.
Hopefully it'll drop back to the $43-$44 range and I can buy in again. If not, I still made my target estimates on the stock.
Session Start (Me:Him): Tue Feb 06 13:26:01 2007
[13:26:06] Him: not bad at all
[13:26:26] Me: i had an original price target/expectation of $40 by the end of this year
[13:26:35] Me: that would be a 16.6% rise
[13:26:54] Me: that was my conservative estimate. bullish estimate is $50 if they can meet demand with the wii
[13:27:11] Me: which would be 45.8% rise
[13:27:25] Me: so here's hoping
[13:27:59] Him: $40 sounds about right
Session Close (Him): Tue Feb 06 13:32:15 2007
And right now, the stock is very close to my most bullish year end estimate, and at the upper range of the estimates of nearly every analyst. Between the profit taking on the TSE the past couple of days, it being in the upper range of my bullish estimates, and there being no news for the next month or so, I figured now was a good time to sell out of the ADR.
Hopefully it'll drop back to the $43-$44 range and I can buy in again. If not, I still made my target estimates on the stock.
Similar threads
