Lets just not make this the latest Nintendo vs Sony vs MS thread on the interwebs. My point was simply that to analyse Nintendo's value and future prospect, you need to go beyond game sales.

Quote: Original post by Steadtler
Lets just not make this the latest Nintendo vs Sony vs MS thread on the interwebs. My point was simply that to analyse Nintendo's value and future prospect, you need to go beyond game sales.

Now I agree with this statement! I'm not out to make this a MS vs Nintendo vs Sony thread either. But I think most people's eyebrows would raise if someone were to make your original claim that Nintendo wasn't a video game company. That was really my own contention.

It depends on when you bought it and your strategy. I sold 75% at $75 and the other 25% at around $60 (pink sheets, not sure if you are on the Nikkei or not). I think it's been a bad hold since then.

Remember that the majority of investors in this stock are not gamers, they are traders and fund managers. They hear that Wii is selling like hot cakes and they jump on the band wagon. They're not going to be up to date with the latest gaming trends or feeling on the street. From a growth perspective, Nintendo is going to have a hard time.

Also keep in mind that if you are on pink sheets you have two other issues two deal with outside of performance, the strength of the dollar and the strength of the yen.

I would only recommend holding onto it if you feel like they have growth potential long term and some more Nintendo exclusive hits that will dominate sales. Also, if you feel like both the Dollar and Yen are going to do strong. Outside of that, I would say the company from a stock perspective is past its prime.

a slight thread hijack but it is related to investing into a gaming related company.

What are peoples thoughts on investing in Gamestop. The fundamentals for the stock are extremely good considering the price. Its priced right now like its going to go off the edge because of online downloads. So the question is it really going to get hammered the way its priced currently.

Quote: Original post by Spinoza
a slight thread hijack but it is related to investing into a gaming related company.

What are peoples thoughts on investing in Gamestop. The fundamentals for the stock are extremely good considering the price. Its priced right now like its going to go off the edge because of online downloads. So the question is it really going to get hammered the way its priced currently.

Personally I would be extremely reluctant to invest in any company which spends a significant portion of their income on the gaming industry. It is an extremely volatile market and companies tend to have a wild swing of profit only to be in the shitter months later. I made one exception with Nintendo because they had good profits with DS and were actually going to make money on Wii hardware sales. As an example of the industry, they are a great company who's had amazing success with their last products and their stock is less than half of their peak from late 2007.

I would only put money into Gamestop if you were comfortable gambling with it. Not only are you in the games industry but they are a dying business that only makes money ripping people off. They had a good run during the bust as people were selling games to make cash and more people were buying used to save money, but unless they reinvent themselves I don't think they are going to return to the glory days. At most you can play the numbers and hope to make some quick money on the highs and lows. But there are other companies with solid fundamentals in good industries that have similar opportunities right now. I'm doing something similar with BoA, which is trading at around 65% of book value and has a bright future ahead of it. This allows you more flexibility if you fudge an entry point. I would 100% strongly recommend against buy-and-hold for a company like GME.