I'm not sure if you've read my previous posts on Nintendo (NTDOY) but not much has changed in my opinion. Although NTDOY is now about 10% more expensive since my last post, moving from 38 to 42, I believe it will continue to go higher.
I don't feel that the market has fully priced in the future success that should be coming Nintendo's way and as Laoldar has mentioned the Wii is only beginning to show up on the earnings and they should show great year on year numbers for at least the next couple quarters. Additionally, seven months out from launch, the Wii is still sold out worldwide and the biggest titles (Mario, Smash Brothers, Metroid) have yet to be released.
Many analysts, like the very vocal Michael Pachter of Wedbush Morgan, still feel that the PS3 will remain the dominant platform this generation or they believe that Sony and Microsoft will be on an even level with Nintendo. More and more, I am starting to believe that Nintendo will win this entire generation, selling the most units out of the three at the end of their lifecycles.
At the very least I expect Nintendo to continue to dominate for the rest of the year, selling the most home consoles systems, the most portable systems, and the most software units worldwide.
Of course things could always change and Nintendo could start to falter. Perhaps the PS3 will mount a sudden resurgence or maybe Nintendo's own software won't live up to expectations. If Nintendo shows signifigant weakness I will definitely consider selling my shares. But as a close industry watcher, an avid SimExchange user, and and a fan of video games in general, I feel that I will be able to see any change in the industry coming and I will be ahead of the market if a shift occurs.
For now though I think Nintendo will continue to outperform and I remain long shares of NTDOY.
7
I'm not sure if you've read my previous posts on Nintendo (NTDOY) but not much has changed in my opinion. Although NTDOY is now about 10% more expensive since my last post, moving from 38 to 42, I believe it will continue to go higher.
I don't feel that the market has fully priced in the future success that should be coming Nintendo's way and as Laoldar has mentioned the Wii is only beginning to show up on the earnings and they should show great year on year numbers for at least the next couple quarters. Additionally, seven months out from launch, the Wii is still sold out worldwide and the biggest titles (Mario, Smash Brothers, Metroid) have yet to be released.
Many analysts, like the very vocal Michael Pachter of Wedbush Morgan, still feel that the PS3 will remain the dominant platform this generation or they believe that Sony and Microsoft will be on an even level with Nintendo. More and more, I am starting to believe that Nintendo will win this entire generation, selling the most units out of the three at the end of their lifecycles.
At the very least I expect Nintendo to continue to dominate for the rest of the year, selling the most home consoles systems, the most portable systems, and the most software units worldwide.
Of course things could always change and Nintendo could start to falter. Perhaps the PS3 will mount a sudden resurgence or maybe Nintendo's own software won't live up to expectations. If Nintendo shows signifigant weakness I will definitely consider selling my shares. But as a close industry watcher, an avid SimExchange user, and and a fan of video games in general, I feel that I will be able to see any change in the industry coming and I will be ahead of the market if a shift occurs.
For now though I think Nintendo will continue to outperform and I remain long shares of NTDOY.