NTDOY

Nintendo Shs Unsponsored American Deposit Receipt Repr 1/8 Sh

TMT


Presented:09/03/2020
Price:$70.10
Cap:$66.80B
Current Price:$13.12
Cap:$61.10B

Presented

Date09/03/2020
Price$70.10
Market Cap$66.80B
Ent Value$41.79B
P/E Ratio20.74x
Book Value$15.11
Div Yield1.8%
Shares O/S952.99M
Ave Daily Vol524,903
Short IntN/A

Current

Price$13.12
Market Cap$61.10B
Nintendo Co., Ltd. engages in the development, manufacture, and sale of home entertainment products. Its entertainment products include portable and console game machines and software, trump card and Karuta (Japanese-style playing cards), multinational consumer electronics, home console hardware such as Nintendo Wii, Nintendo DS, Nintendo 3DS, and others; as well as software for handheld and home console gaming machine. The company was founded by Fusajiro Yamauchi on September 23, 1889 and is headquartered in Kyoto, Japan.

Publicly traded companies mentioned herein: Activision Blizzard Inc, Electronic Arts Inc (EA), GameStop Corp (GME), Nintendo ltd (7974 JP, NTDOY), Olympus Corp (7733 JP), Take-Two Interactive Software Inc (TTWO)

Highlights

The presenter is long shares of Nintendo (7974 JP, NTDOY), expecting the console manufacturer/video game publisher to benefit from secular tailwinds and general video game industry growth. His long thesis centers around the company's shift to digital download and a less cyclical business model. Historically, NTDOY has traded at a discount to third-party publishers like EA, which he attributes to the historical cyclicality of the company’s console business, but he believes NTDOY is a better business and should trade at a premium to the publishers. If the company is able to execute as the presenter expects, there is no reason why they shouldn’t trade at multiple parity or a premium to the other third-party publishers.

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Idea Discussion

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