Nintendo raises guidance for the year -- is this is a good long term investment now?
Answers
MajorPayne answered 3 months ago …
I think Nintendo will be a good long term investment for a while now. The Wii has only just started to break into the non-gamer market here in the States (it's already done so in Japan). The company continues to innovate AND manage inventory and supply well. This accomplishes 2 objectives:
1. Increases inventory turnover rates, which means cash comes in quicker and increases the annual returns on capital/assets.
2. Maintains supply/demand ratios which keeps the price point high
As long as the company continues to be conservative with its capital and innovative with its product line, I think Nintendo will continue to do well for the next year or two.
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