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Nintendo Stock Jumps 10%, Could Rebound to Over $50 Per Share in Next 3 Years

D

DaSorcerer7

Member
Industrygamers.com said:
Nintendo hasn't been faring so well of late. The company had to slash the price on its 3DS and reduce its annual profit forecast. Meanwhile, the company's stock has been down 40% this year. Overnight, however, Nintendo's stock suddenly jumped 10%. What happened? Are investors now encouraged by the new low 3DS price?

Well, that may have helped, but the real explanation for the boost is actually that there are now expectations of Nintendo being included in the Nikkei 225 Stock Average. At the moment, Nintendo shares are traded on the Osaka Exchange.

Panoptic Management Consultants CEO Asif Khan explained to IndustryGamers, "Nintendo shares spiked 9.8% overnight in Japan on a rumor that the Japanese traded 7974 shares could be added to the Nikkei 225 index. This is great news for Nintendo shareholders as most companies on the verge of self-destruction are rarely added to benchmark indices. When stocks are added or dropped from market indices it forces ETFs, and mutual funds to buy or sell shares. In the case of Nintendo, any fund that attempts to mimic the Nikkei 225 will have to buy up shares."
Click to expand...

Khan continued, noting that Nintendo actually could climb back beyond the $50 per share mark: "I believe we are seeing savvy buyers trying to front run that trade. If you know that there are big ETF and mutual fund buyers waiting for the rumor to become official, why not get in ahead of them? This is why I believe that Nintendo is up on the day. We own the NTDOY ADR for clients and in our personal accounts and this move above $19/share is just the beginning of what we believe is in store for this company. I believe NTDOY could reach $50-65/share over the next 3 years, so this $1.50 move today is welcome but not exactly a tectonic shift. We continue to like shares, and today's rumor of the addition to the Nikkei 225 should be viewed as a vote of confidence in Nintendo's future.
Click to expand...

Source
 
B

BurntPork

Banned
Ah. I was wondering why the stock jumped like that.

This is great news for Nintendo shareholders as most companies on the verge of self-destruction are rarely added to benchmark indices.
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Blank-Facepalm.gif
 
W

wsippel

Banned
TheExecutive said:
Buying on rumors is almost always a bad idea unless you start them and then leave before the shit hits the fan...
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Unless, you know, the rumors turn out to be true. Which tends to happen every once in a while.
 
T

TheExecutive

Member
wsippel said:
Unless, you know, the rumors turn out to be true. Which tends to happen every once in a while.
Click to expand...
every once in a while and even then it just attracts short-term buyers. Buy on rumor sell on news!
 
T

The Technomancer

card-carrying scientician
Guys, I think we're misinterpreting the :lolworthy quote. I don't think he's saying Nintendo is on the verge of destruction, I think what he's saying is "if you thought they were for some reason this is evidence to the contrary"
 
W

walking fiend

Member
The_Technomancer said:
Guys, I think we're misinterpreting the :lolworthy quote. I don't think he's saying Nintendo is on the verge of destruction, I think what he's saying is "if you thought they were for some reason this is evidence to the contrary"
Click to expand...
unless some investors exist that think that the company they have invested in is in the verge of destruction...
 
P

Puppet Shadow

Member
The_Technomancer said:
Guys, I think we're misinterpreting the :lolworthy quote. I don't think he's saying Nintendo is on the verge of destruction, I think what he's saying is "if you thought they were for some reason this is evidence to the contrary"
Click to expand...
Pretty much. Not sure how people are reading this wrong.
 
R

RurouniZel

Asks questions so Ezalc doesn't have to
The_Technomancer said:
Guys, I think we're misinterpreting the :lolworthy quote. I don't think he's saying Nintendo is on the verge of destruction, I think what he's saying is "if you thought they were for some reason this is evidence to the contrary"
Click to expand...

Yes. It was used in the ironic sense. Like "Yeah, they're so incredibly doomed that they're being added to an even bigger exchange! Completely fucking screwed, right?"
 
W

walking fiend

Member
Puppet Shadow said:
Pretty much. Not sure how people are reading this wrong.
Click to expand...
because shareholders don't keep their investments in companies on the verge of destruction, definitely won't take for something like this to happen to take out their investments before it nose dives.
 
W

wrowa

Member
The_Technomancer said:
Guys, I think we're misinterpreting the :lolworthy quote. I don't think he's saying Nintendo is on the verge of destruction, I think what he's saying is "if you thought they were for some reason this is evidence to the contrary"
Click to expand...
Some people want to misunderstand.
 
T

ThoseDeafMutes

Member
[Nintex] said:
I've seen these 'analyst' guys before and they pretty much never do sarcasm or irony for that matter.
Click to expand...

It's not sarcasm or irony, though. How can anybody possibly take that quote to mean that they were on the verge of collapse? It took me like two minutes to realize why people were even highlighting and laughing at that quote, but evidently there's a legion of people who interpret everything ass backwards.
 
M

Mpl90

Two copies sold? That's not a bomb guys, stop trolling!!!
Instro said:
People got some info on 3DS sales in Japan maybe?
Click to expand...

This could also be a reason. Even if I remember that the Monday after the second week of 3DS in Japan, stocks have fallen of 4%... and then we saw that it did 210k in the second week, a SUPERB result :lol
So... Let's see if the 3DS numbers will be good.
And LOLWUT @ self distruction, The only link left between Nintendo and Amirox, apparently.
 
S

Stumpokapow

listen to the mad man
Erm, he's not saying "Nintendo are on the verge of self-destruction", he's saying "Companies being added to the Nikkei 225 are healthy, so this is an indicator of Nintendo's health."
 
H

HamPster PamPster

Member
Someone should start a GAF stock market game. We each get $1000 pretend dollars to invest in game companies and in like 6 months we see who made the most pretend money

BET IT ALL ON BLACK SEGA

I got a good feeling about generations...
 
J

jman2050

Member
Stumpokapow said:
Erm, he's not saying "Nintendo are on the verge of self-destruction", he's saying "Companies being added to the Nikkei 225 are healthy, so this is an indicator of Nintendo's health."
Click to expand...

To be fair the phrasing isn't strictly clear, but yeah that should've been the obvious contextual meaning.
 
J

Jeels

Member
jman2050 said:
To be fair the phrasing isn't strictly clear, but yeah that should've been the obvious contextual meaning.
Click to expand...

It is pretty clear if you have average reading comprehension skills.
 
D

djplaeskool

Member
There is also effects from the recent report that the Japanese economy was not as impacted as originally thought by the Sendai Quake/Tsunami and shows signs of a fast turnaround, though things could be hamstrung by the valuation of the Yen if left unchecked. A good deal of Japanese companies enjoyed a little bump today.

Source
 
1

1-D_FTW

Member
HamPster PamPster said:
Someone should start a GAF stock market game. We each get $1000 pretend dollars to invest in game companies and in like 6 months we see who lost the least amount of money.
Click to expand...

Fixed.
 
B

BurntPork

Banned
Stumpokapow said:
Erm, he's not saying "Nintendo are on the verge of self-destruction", he's saying "Companies being added to the Nikkei 225 are healthy, so this is an indicator of Nintendo's health."
Click to expand...
I basically took both meanings. In other words, that he previously was wo...

Wait. I just realized how dumb that sounds.
 
M

mollipen

Member
Eyeh4wk said:
Pfft. Still 3 years to return to its former glory.
Click to expand...

The stocks "former glory" was around $65/share. Trust me, I know, because when I bought Nintendo stock I was expecting it to return to that former glory. Whoops. *cries*
 
W

whatsinaname

Member
HamPster PamPster said:
Someone should start a GAF stock market game. We each get $1000 pretend dollars to invest in game companies and in like 6 months we see who made the most pretend money

BET IT ALL ON BLACK SEGA

I got a good feeling about generations...
Click to expand...

I think a bunch of GAF'ers do this in the Stocks/Options/Investments thread.
 
Boss Doggie

Boss Doggie

all my loli wolf companions are so moe
Say, did the doom prediction started years ago before Wii's launch? How was the reaction after seeing the numbers?
 
D

dwu8991

Banned
I have to say, Nintendo is ripe for the taking. Microsoft should move in quick, pay a 50% premium and take over Nintendo for $30-$35 a share. Combine live, windows, xbox, skype, bing wii u and 3ds into one device.
 
A

A Twisty Fluken

Member
dwu8991 said:
I have to say, Nintendo is ripe for the taking. Microsoft should move in quick, pay a 50% premium and take over Nintendo for $30-$35 a share. Combine live, windows, xbox, skype, bing wii u and 3ds into one device.
Click to expand...

This sounds strangely familiar.
 
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