Tuesday, October 30, 2007

The red sun rises over the dragon

Five letters: NTDOY

That is the stock symbol for Nintendo. During the months of July-September it sold 3 times more units than PS3 and XBox. The demand is still higher than supply. The holiday season looks good, but the biggest news is this: Nintendo will begin selling in China for the first time ever in 2008.

With the Chinese market exploding the Wii should also. China is making millionaires percentage wise faster than most other countries in the world.

I only wish I had joined in sooner. I think this is a good example for dollar cost averaging up.

4 comments:

Greg said...

Wow, it's gone up like 200% in a year. How many more percent to you really think it has?

I think I will hide in my index fund where I probably own 0.001% of the company.

Daniel said...

I think it has the same amount of percentage increase left as google in saying "oh, its probably hit its highest point now... i mean now... now.... i mean now...wait... now. I really meant now"

joe said...

Dan is right, how much a stock has gone up is not how you judge a company. With that said being stupid and only using a P/E ratio; Nintendo is selling at 20 times earnings as compared to electronic arts which sells at 737, sony at 50, and mircosoft at 23.

The China question is:
These companies make money off of games and not the Wii unit itself. How easy is it to make black market copies of all the Wii games?

Overall this is not a long term play because who knows what company will have the next great project 5 years from now.


Nintendo is fun but why not buy bidu. I mean "It's the google of China!!!"

Daniel said...

Bidu might be an excellent choice too, but I know a little less than nothing about it.

You are correct that companies make money of the games, but i'm talking about Nintendo which sells the system. For Nintendo to do well it wants to sell systems faster than supply which I think it will do in China.

I also agree that Nintendo probably isn't a long term (>5 yrs) investment I feel it should do just fine over the next 12 months.