The stock was sold following disappointing third-quarter earnings. We originally bought the shares in early July, based on the view that the earnings slowdown had already happened, with earnings rebounding in the second half, on the back of successful software launches. In the event, product launches have not been particularly well received, the dividend has been cut, competition is increasing, and earnings catalysts into 2010 look to be few.
Nintendo has an excellent brand
name and a reputation as one of the dominant computer games
consoles makers globally going back many years. Despite expectations to
the contrary, its recent hardware sales volumes have been strong, which
will translate into future games sales. After a significant decline,
the shares now provide excellent value, with a cash balance equivalent
to 35% of its market capitalisation and a dividend yield of 5.4% to boot
| Sedol |
Type |
Price |
Date |
| 6639550 |
Sell
|
JPY 23,123 |
30/10/2009 |
| 6639550 |
Buy |
JPY 26,477 |
08/07/2009 |
|
