Dante Posted April 16, 2007 Posted April 16, 2007 Shares of Nintendo Co. surged to a record as JPMorgan Securities Japan Co. started coverage of the company with an ''overweight'' rating on its earnings prospects from the Wii game console. The stock climbed 3.2 percent to 37,450 yen at the close on the Osaka Securities Exchange, the highest since the Kyoto-based company was listed in January 1962. The broader Topix index gained 1.2 percent after the yen fell to a record low against the euro, boosting the value of exports to Europe. ``The stock's rally reflects investors' positive sentiment about Nintendo's earnings,'' said Junichi Misawa, who oversees $655 million at STB Asset Management Co. in Tokyo. ``The yen's exchange rate has a big impact on the company's net income,'' contributing to the share gains, he said. Nintendo this month raised its annual earnings estimate for the fourth time for the fiscal year, helped by sales of the DS portable player and the Wii console, whose sales outpace Sony Corp.'s PlayStation 3 machine by two to one in Japan and the U.S. JPMorgan analysts Eiji Maeda and Yuko Sekine cited ``strong'' sales of the DS and Wii for the rating, its highest ranking. ``We expect operating profit growth to remain strong over the medium term'' on the continued success of the DS and Wii players, the analysts wrote in a report dated April 13. The analysts forecast Nintendo's shares to rise 15 percent from the current price to 42,500 yen by April 2008. Shares of Nintendo more than doubled in the past year, outperforming a 17 percent gain in Sony's stock. Higher Revenue Sales climbed 90 percent to 966 billion yen ($8.1 billion) for the year ended March 31, Nintendo said in a preliminary earnings statement on April 5. In January, the company forecast 900 billion yen in sales, of which 70 percent comes from overseas. Net income beat earlier forecasts after a greater-than- expected decline in the yen against the euro and dollar boosted earnings by about 20 billion yen, Nintendo said, without specifying a figure. The euro rose to a record 161.63 yen after the Group of Seven industrial nations stopped short of saying following a meeting on April 13 that the Japanese currency is too weak. Nintendo has sold 2.04 million Wii units in Japan since its debut on Dec. 2 last year, Tokyo-based Enterbrain Inc. said last week. Sony has sold about 812,000 of the PlayStation 3 since Nov. 11, the researcher said April 2. An ``overweight'' rating means JPMorgan expects the stock to outperform the average return of shares under its coverage over the next six to 12 months. bloomberg
Zechs Merquise Posted April 17, 2007 Posted April 17, 2007 It seems like this truly is Nintendo's time, if things keep going like this Nintendo will once again claim the console crown. With PS2 out selling PS3 in Japan Nintendo's game plan looks like it may well pay off.
DCK Posted April 17, 2007 Posted April 17, 2007 Guess it would be a smart move to start buying some Nintendo shares right now, because I can't imagine this is where the growth comes to a halt. The Wii conquers at the moment; it's only about 3 months away from passing the 10 million mark and it's likely to overtake the 360 by Christmas.
Pit-Jr Posted April 17, 2007 Posted April 17, 2007 id be more excited if Nintendo actually spent some of this money or shaved the price of Wii and VC games a little. Otherwise
Zechs Merquise Posted April 17, 2007 Posted April 17, 2007 id be more excited if Nintendo actually spent some of this money or shaved the price of Wii and VC games a little. Otherwise It's not the right time for a price drop yet. A good low price is a great selling point, silly low prices indicate that something is on it's way out. Plus, why drop the price when something is selling so well. PS3 needs to drop it's price and soon!
Pit-Jr Posted April 17, 2007 Posted April 17, 2007 It's not the right time for a price drop yet. A good low price is a great selling point, silly low prices indicate that something is on it's way out. Plus, why drop the price when something is selling so well. PS3 needs to drop it's price and soon! Im talking about software, mainly VC software but i also think Wii software could effectively be prices a little cheaper
Rummy Posted April 17, 2007 Posted April 17, 2007 I was considering buying some Nintendo shares back around just before the American wii release, though it seemed far too complicated as I'd have to find a broker for the american or japanese markets, and set up accounts and all that, and I found it pretty hard to find a decent place to track the stock price. Which is what I come to ask, you got anywhere that shows a graph of its price over the last year?
aenaos Posted April 17, 2007 Posted April 17, 2007 Impresive! I think these days and months are historical for the video games world..Nintendo takes the leader place again..
Smiter Posted April 17, 2007 Posted April 17, 2007 Which is what I come to ask, you got anywhere that shows a graph of its price over the last year? Yeah, Kotaku did a graph when they ran a story on Nintendo's stock doubling. http://kotaku.com/gaming/nintendo/nintendo-stocks-hit-the-heights-251268.php They have a nice little graph there.
Hellfire Posted April 17, 2007 Posted April 17, 2007 I'm afraid it's not original anymore to say "Nintendoomed".
Zechs Merquise Posted April 18, 2007 Posted April 18, 2007 Im talking about software, mainly VC software but i also think Wii software could effectively be prices a little cheaper It think software going to £35 might be acceptable
DCK Posted April 18, 2007 Posted April 18, 2007 Why would Wii games have to cost any less than GameCube games?
Darkspine S Posted April 19, 2007 Posted April 19, 2007 It think software going to £35 might be acceptable Nothing but a passing dream. Brand new games have been £40 or over for as long as I remember.
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