VGcharts now has the Wii version selling 119,750 copies in NA through Jan 07. The game has sold 91,250 copies in Japan. The stock may have some upside at this point.
I think the P/FSM sales tool could be strengthened in its applicability, if it is combined with another ratio: First Month Sales to Lifetime Sales. In other words, What percentage of an average video game's lifetime sales are comprised of its first month sales?
I guess I should have phrased my question in a different way: Arbiter, why do do you believe that P/FMS is a useful tool for evaluating a games stock price? I understand that a games first month sales are important, but we have to keep in mind that SimExchange prices are supposed to be a predictor of lifetime sales.
I think the P/FSM sales tool could be strengthened in its applicability, if it is combined with another ratio: First Month Sales to Lifetime Sales. In other words, What percentage of an average video game's lifetime sales are comprised of its lifetime sales?
Baron, I think Arbiter was referring to his P/E ratio comment. People have been valuing the stocks using a similar ratio: Price / First Month Sales. Many games are priced at a high ratio, meaning they have to grow in sales or consistenly maintain sales for several months.
This stock is also over a 14x Price to First Month Sales ratio (my new invention). Granted, these Wii games were only selling for 11 days of the month and the Wii was hardly available, I think a 6x ratio is high for a game on an established console.
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