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[Grakl]

First reply made me laugh, exactly what I thought.

 

[Cheesemeister]

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*

I thought you couldn't get into Zelda?

 

[Y2Kev]

Buying on rumors is almost always a bad idea unless you start them and then leave before the shit hits the fan...

Um, wat? That's basic trading (expectations hypothesis)! Buy on rumor, sell on news!

 

[Culex]

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.

Unless Nintendo wants to absolutely go extinct in Japan by being owned by a US company, this is never going to happen.

 

[Drkirby]

Nintendo is a fairly safe bet. Their stock price fluctuates, but it has been very consistent in paying dividends for two decades now. If you bought the stock a decade ago, I think the dividends alone would add up to more then the price of the stock at purchase, even accounting for inflation.

 

[Eid]

That's total speculation at this point. I've always been optimistic about Nintendo, but their future is very uncertain with the Wii U, and I feel that it'll be another repeat of the 3DS scenario from what they've shown about the system.

 

[we.are.the.armada]

Hmmm, that's interesting. I hope Nintendo does well this holiday.

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*

Ah bummer man. So yeah, I've taken your advice.

Spoiler

WAHP June

 

[AbsoluteZero]

Say, did the doom prediction started years ago before Wii's launch? How was the reaction after seeing the numbers?

I think they were first doomed when the Genesis was released in 1989. Someone want to correct me here if necessary?

 

[SlipperySlope]

That's total speculation at this point. I've always been optimistic about Nintendo, but their future is very uncertain with the Wii U, and I feel that it'll be another repeat of the 3DS scenario from what they've shown about the system.

I believe that Iwata has a good ability to learn from mistakes. They've realized their mistake with the 3DS, and corrected it in just a few months.

 

[Lord_Byron28]

Say, did the doom prediction started years ago before Wii's launch? How was the reaction after seeing the numbers?

Nintendo was doomed since they entered with the NES. The videogame market had completely collapsed and crashed. Not many thought the NES would be succesful much less fully resurect the videogame market. Ever since then it's been a constant cycle of Nintendo is Doomed. Ironically any time the doom predictions die down(see post SNES and Post DS) is when they start doing poorly.

 

[dwu8991]

Nintendo is a fairly safe bet. Their stock price fluctuates, but it has been very consistent in paying dividends for two decades now. If you bought the stock a decade ago, I think the dividends alone would add up to more then the price of the stock at purchase, even accounting for inflation.

There's no such thing as a safe bet. Nintendo is in a deep dire financial situation. They are losing market share and the wii u involves significant costs and risks.

 

[BurntPork]

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.

 

[nckillthegrimace]

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*

Everything makes sense now!

 

[qq more]

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.

Are you actually serious about this? Please tell me that's a joke. :|

 

[DCharlie]

I'd cheer this but i have no clue what any of this is about !

It makes me warm inside knowing that the share price could go to $50 in 3 years!

I'm super happy for the triumphant Nintendo!


... ?

 

[GDGF]

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."

Exactly.

 

[Boss Doggie]

I think they were first doomed when the Genesis was released in 1989. Someone want to correct me here if necessary?

Nintendo was doomed since they entered with the NES. The videogame market had completely collapsed and crashed. Not many thought the NES would be succesful much less fully resurect the videogame market. Ever since then it's been a constant cycle of Nintendo is Doomed. Ironically any time the doom predictions die down(see post SNES and Post DS) is when they start doing poorly.

So essentially it's a hobby nowadays to prodict its doom, eh?

 

[Barrett2]

What is Nikkei 225, is that equivalent to the S&P 500 or prominent index?

 

[trinest]

What is Nikkei 225, is that equivalent to the S&P 500 or prominent index?

Yeah like in Australia its the ASX top 200.

 

[MisterHero]

The article is optimistic but I'd rather the price increase be backed up by true signs of success, such as the combined phenomena of DS, Wii, and software.

Such was the basis for NTDOY being sold for $78.50 A SHARE in October 2007 and the best time to buy was in May 2003, when it was being sold for $9.35

That low was right around E3 of that year, I don't think a lot of people saw a lot of promise in GC/GBA connectivity, even though it would go on to inspire part of Nintendo's massive success (the DS).

http://moneycentral.msn.com/investor/charts/chartdl.aspx?symbol=NTDOY&CP=0&PT=10

Oddly enough, I thought I'd seen it even lower. Oh well.

So essentially it's a hobby nowadays to prodict its doom, eh?

I'm of the presumption that most shareholders are in it for the investment game and aren't actually aware of what the company they own part of do (or just don't care as much).

The doomspeak is more about covering the investor's interests than having any sort of statement on the company itself.

The negative speculation is what spurs the price drop but Nintendo needs something solid to respond to infectious 'doomspeak'.

 

[Synth_floyd]

I thought stockholders didn't know anything and only cared about short term profits and the stock price wasn't indicative of the true value of Nintendo?

 

[Parmenides]

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."

It's funny because there is no need to state the obvious,especially like the way he did!

Anyway,everything is so dramatic these days (Vita is a car wreck, Nintendo has a strong chance of survival because "most companies on the verge of self-destruction are rarely added to benchmark indices"), that I just couldn't resist... (LOL)


On a second thought: What did he really think?

Nintendo Apple Combination Would Be Force to be Reckoned With

August 3, 2011

Nintendo's stock has had a precipitous drop in the last few years. Back in the 2007-2008 timeframe, Nintendo shares were trading in the 60-70 range. As of right now, it's down to 19.01. It's at a six-year low following a sudden 3DS price cut and a big reduction in annual profit forecast. If the trajectory continues, it'll be back down to Gamecube like levels, trading at 15 or below, and the question has to be asked: Will Nintendo become an acquisition target?

"As Nintendo's share price continues to plummet, it is fair to ask if they are an acquisition target," observed Panoptic Management Consultants CEO Asif Khan to IndustryGamers. "With a market capitalization around $20 billion, there are a handful of tech companies that could afford to make an offer. Apple, Google, and Microsoft would be the leading candidates in my opinion. Another less likely outcome could be a merger with Panasonic or Sony as neither of those companies could afford to buy Nintendo outright."

An alliance with Apple certainly would be interesting. Imagine all of Nintendo's hot IP finally coming to iOS platforms. "I think a combination of Nintendo and Apple would be a force to be reckoned with for years to come," said Khan.

And apparently Steve Jobs thinks so too. "I had a chance to speak with Steve Jobs at last year's Apple shareholder meeting and asked him specifically if Apple would ever consider acquiring Nintendo," Khan added. "They currently have $75 billion of net cash at Apple, so they are in an even better situation to make a bid for Nintendo. Jobs has been quite agnostic about video gaming for years but he did say that a strategic alliance, if profitable, would make more sense with Nintendo."

Another interesting possibility could be Google, which may be pursuing gaming more heavily in the years ahead. "Google has been stealthily acquiring game companies left and right with more of a focus on casual gaming, but they are just crazy enough to make a bid for the Big N," Khan said. "Although, acquiring Nintendo could preclude Google from making more acquisitions down the road due to antitrust concerns and constrained cash as a result of the purchase."

And what about Microsoft? "It is obvious that Microsoft would benefit from the treasure trove of intellectual property at Nintendo, and they have the money to burn. They bought Skype for $8.5 billion and they aren't even profitable," stated Khan.

Is any of this likely to happen though? Analysts seem to agree that it would be very difficult for another company to pull off. "It is a near impossible acquisition, with the majority of shares controlled by a few shareholders," stated Wedbush analyst Michael Pachter.

David Cole of DFC Intelligence remarked, "Nintendo suffered from the hot product syndrome where their stock soared because of the Wii and no real intrinsic change in their business. It pretty much quadrupled and now it has come back down to earth. Really it was a very inevitable process. However, I don't see them as an acquisition target."

He continued, "At their peak they had market cap almost double Sony. Now their market cap is fairly equal to Sony. So along with speculation about who will buy Sony we now get speculation about who will buy Nintendo. Really I think the market value of both companies is too high for almost anyone and it would be a messy process trying to merge. So we get speculation but it is just that."

Khan also acknowledges that a Nintendo acquisition is not too likely... at least not for a few more years.

"All this is fine and dandy, but the bottom line is that Nintendo won't sell unless they absolutely have to. Hiroshi Yamauchi owns about 10% of the company and the proud nature of Japanese companies would make an American acquirer difficult to accept. At 83 years old, Yamauchi won't be around forever and it is unclear what his heirs would want to do with their stake after he passes. So perhaps there is a possibility of an acquisition down the road, but I wouldn't bet on it. I don't think it is likely that Nintendo gets acquired ahead of the Wii U release," Khan said.

What do you think? Will Nintendo ever merge with another firm or get acquired?

 

[saichi]

It's funny because there is no need to state the obvious,especially like the way he did!

Anyway,everything is so dramatic these days (Vita is a car wreck, Nintendo has a strong chance of survival because "most companies on the verge of self-destruction are rarely added to benchmark indices"), that I just couldn't resist... (LOL)


On a second thought: What did he really think?

Nintendo Apple Combination Would Be Force to be Reckoned With

this writer just put that title for hits. I feel so cheated.

 

[Kazerei]

Interesting, but I think people are underestimating how massive Nintendo's value is. Microsoft would be better off acquiring EA, for example. Its value has fallen quite alot, so it'd be much easier to acquire. And can you imagine if EA Sports games were Xbox exclusive? That'd be crazy.

 

[charlequin]

There's no such thing as a safe bet. Nintendo is in a deep dire financial situation.

This is charming.

And can you imagine if EA Sports games were Xbox exclusive?

No, I can't, because all of EA's sports licenses would be instantly voided by a platform-holder acquisition -- which is one of several excellent reasons why no one takes discussions of MS buying EA seriously.

 

[Jin34]

Damn I really should have looked into buying some stock.

 

[TheRagnCajun]

Damn I really should have looked into buying some stock.

still plenty of room to grow depending on your expectations of 3DS and Wii U

 

[Jin34]

still plenty of room to grow depending on your expectations of 3DS and Wii U

True, just look at how little some people thought the 3DS would get a bump out of the price drop. And with people jumping on the "mobile phone killing handhelds" faster than Heat lifelongs jumped in after the Lebron signing, there is still a ton of room to grow.

 

[Kazerei]

No, I can't, because all of EA's sports licenses would be instantly voided by a platform-holder acquisition -- which is one of several excellent reasons why no one takes discussions of MS buying EA seriously.

Ahh, I didn't know that. I remember the rumor a few years ago, but didn't follow up as to why it were quashed.

 

[Jokeropia]

There's no such thing as a safe bet. Nintendo is in a deep dire financial situation.

Haha, they're in a better shape financially than 99% of companies out there. 0 debt and $16 Billion in liquid assets.

 

[Orayn]

Nintendo was doomed since they entered with the NES. The videogame market had completely collapsed and crashed. Not many thought the NES would be succesful much less fully resurect the videogame market. Ever since then it's been a constant cycle of Nintendo is Doomed. Ironically any time the doom predictions die down(see post SNES and Post DS) is when they start doing poorly.

So then Nintendo is really just the PC gaming market from an alternate universe, forever doomed, and yet unable to die. It all makes sense now.

There's no such thing as a safe bet. Nintendo is in a deep dire financial situation. They are losing market share and the wii u involves significant costs and risks.

There is a continuum between companies being at their high point and being in a "dire" situation, you know. Nintendo is not quite at either extreme.

 

[wrowa]

Haha, they're in a better shape financially than 99% of companies out there. 0 debt and $16 Billion in liquid assets.

Where does that number come from btw? Bloomberg estimated Nintendo's warchest being worth about 13 billion USD.

 

[BurntPork]

The stock is dropping today...

 

[Persona7]

Glad I bought when low.

 

[Jokeropia]

Where does that number come from btw? Bloomberg estimated Nintendo's warchest being worth about 13 billion USD.

http://www.nintendo.co.jp/ir/pdf/2011/110728e.pdf

Total current assets: 1,262,282 million yen ≈ 16.5 billion USD.

 

[Datschge]

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

With relativism like these misinterpretation is a built-in feature.