Nintendo is ready to take you to tendie town.
https://preview.redd.it/wwn3mq7lxdj81.jpg?width=730&format=pjpg&auto=webp&s=974a3144c31115409e5f2cd9d558e5560b766ecf
Disclaimer: I am not a hedgie, and this post does not include 30 pages of science or massive linkedin pictures of Nintendo's executives....okay, I'll include one:
This is the guy responsible for taking you to tendie heaven. Do you really want to bet against him?
TL;DR - $NTDOY PT of $93 for 46% 1-Yr Gain (jk, I'm holding forever)
- Pokemon, The Legend of Zelda, Nintendo Switch Sports and several other popular titles expected this year are actual money printers
- Super Nintendo World theme parks + Cinema add substantial revenue growth opportunities
- Nintendo has paid variable semi-annual dividends since 1985--hold in taxable account if you want to reclaim a portion of the foreign dividend tax as a tax credit
- Melvin Capital took advantage of low trading volume back in 2018 in a short position on the stock contributing to a 27% decrease in the stock price from its May 2018 peak...Figure this is worth mentioning.
My Position:
800 NTDOY shares w\/adj. cost basis of $62 \(incl. dividends\)
**Note that NTDOY is an ADR that represents 1/8 of 1 ordinary share of Nintendo. There is an ADR with a 1:1 ratio but NTDOY has much more daily trading volume. Relating to stock price, I will only refer to NTDOY for the entirety of this analysis.
BUSINESS OVERVIEW
What does NTDOY do? \- Nintendo develops, manufactures, and sells video game software and hardware globally. The Company owns some of the world's most successful video game franchises including Super Mario, The Legend of Zelda, and Fire Emblem (also Metroid can we get an actual MP4 update ffs) and has substantial ownership of and rights to other intellectual property including Pokemon and Sega.
How Does NTDOY make money? \- Nintendo generates revenue from the sale of physical and digital video games (incl. mobile) and consoles as well as from minority ownership of other popular franchises and licensing fees from toy, fashion brands, and other merchandise sales. The Company has begun diversifying its revenue streams with a new focus on theme parks and increased focus on cinema.
Recent Developments
Mar 2021: Super Nintendo World - Nintendo debuts its first ever theme park "Super Nintendo World" at Universal Studios in Osaka, Japan. The Company plans to expand the park by 2024 and to open additional parks at the Universal Studios locations in Los Angeles, California (2022, possibly 2023) and Orlando, Florida (2025).
Super Nintendo World in Osaka, Japan
- The Osaka, Japan location currently has two primary attractions:
- Mario Kart: Koopa’s Challenge - Designed for adults and children. Has been described as being more engaging and visually intense than any other existing theme park.
- Yoshi’s Adventure - Specific focus on families and children. A casual ride that encircles Super Nintendo World, providing a view of all elements of the park.
- Other park features:
- General and express passes available which provide priority for attractions with set lengths of time
- Treasure hunts encourage multiple visits and/or purchases of express passes
- *Nintendo-themed restaurants, cafes, and souvenir