Wednesday, July 25, 2007

Nintendo blows out earnings expectations

Nintendo has been a steady monster for the past year, and for the past eight months, in particular.

However, NTDOY.PK could be in for its biggest day in a long time. A Seeking Alpha story on Yahoo! reports that Nintendo shares in Japan made a huge run to 56,800 yen per share earlier today after profits increased 41% to $2.04 billion. The Japanese shares have no connection to the American stock, but 56,800 yen would be worth $59.04. Nintendo closed yesterday's stateside market at $56, an all-time high.

The Co also raised sales guidance along with a host of positive news for the stock. Perhaps most impressive is this: the Co increased its Wii and software sales targets significantly.

This all translates to good news for Nintendo longs. The bad news? Getting shares below $50 could well be a pipe dream now. Forty-five minutes before the opening bell, there is no trade on Nintendo, but there's a bid for $58.85.

Disclaimer: Pupule Paul is slightly long NTDOY.PK.

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