Nintendo Shareholders Anxiously Await Announcement

In October of 2005, 2006, and 2007 Nintendo (NTDOY.PK) announced upward revisions of their forecasted respective fiscal year ending March 2006, 2007, and 2008 earnings and dividends. Its October 2006 modification was followed by further upward revisions issued on January 10, 2007. No such upward modification announcement was made in January of 2006.

Investors looking for a revised forecast of earnings and dividends by Nintendo need to focus their attention on a possible announcement by the company around January 10, 2008. A failure to announce upward modifications would likely cause a cool response and disappointment from Nintendo stockowners who have grown accustomed to seeing long lines of Wii buyers being unable to buy the console.

For the past month, as Christmas shopping accelerated, the Wii console has generally garnered eBay bids of $100 and more above the retail price. At such prices, eBay resellers are surely making more than either Nintendo or its licensed retailers.

Nintendo’s stock price action indicates that stockowners remain relatively confident that the public’s appetite for the Wii will not wane. Knowledgeable observers believe that sales of the Wii in 2008 and future years will now be driven by an abundance of video games likely to be introduced by Nintendo itself and other game developers.

Disclosure: Author holds a position in NTDOY.PK

NTDOY 1-yr chart

Comments

[SmartGuySto...:]

I respectfully disagree. NTDOY's stock price rocketed to the mid seventies in October and has been stuck in a range since. Skepticism is already baked into the shares, otherwise they would have continued to run up. Even the GME announcement to take Wii orders didn't move the shares. That's strange because the program will clearly help sell more Wii's -- but no stock price appreciation? Why don't investors better understand the DS phenomenon or NTDOY games?

NTDOY is not a one trick pony, but the past three months of a stock dead in the water says the market incorrectly thinks otherwise ...

2007 Dec 26 10:34 AM

[Hemlock:]

The number of rain checks GME is allowing for is negligable. They number in the 10s of thousands I believe.

And isn't it possible that the sub prime crisis is responsible for the volatility and stagnation of NTDOY as well as other tech stocks?

2007 Dec 26 08:27 PM

[SmartGuyDMoney:]

Two Words: Wii Fit! The new product launch will not only get America fitter, but will make shareholders' pockets fatter.

Continue acquiring shares until NTDOY hits $100 and then splits the stock price.

2007 Dec 26 09:01 PM

[SmartGuyDMoney:]

Note of disclosure: My above comment is not a recommendation to buy or sell, but just my opinion. Please invest at your own risk.

2007 Dec 27 10:24 PM