Game Trader: Should You Buy Nintendo's Stock?

Today we debut Game Trader, a new show designed to educate viewers about investing in the games industry.

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It is a pleasure to introduce you to my new video show, Game Trader. The show will focus on educating our viewers on the somewhat complicated landscape of investing in the games industry. I have managed my own portfolio for almost 10 years. I am a Certified Public Accountant in the state of Texas and I have 5 years of experience as an investment advisor representative. 

Game Trader will focus on two core aspects of my investment philosophy: Fundamental and Technical analysis. Fundamental Analysis looks at the financial statements of a company to see how they are performing from a cash flow, revenue, expense, and earnings perpective. Technical Analysis, also known as charting, looks at the price movement of a company to see if there are any clues as to its future direction. In a world where 90% of trading is done by computerized algorithmic trading, I believe it is extremely important to be mindful of a stock's chart when making an investment or trading decision.

This show will focus on educating our viewers and will feature a question and answer session driven by comments on YouTube, Facebook, Twitter and of course our Chatty forum. 

This week, I take a look at Nintendo's stock (NTDOY) ahead of the launch of Super Mario Run. Nintendo's stock has had a wild ride in the last year, with Pokemon Go's success pushing shares to levels not seen since 2011. After churning around in a period of consolidation, is it still a good time to buy shares of Nintendo? Please take a look to find out!

For more great videos, be sure to subscribe to Shacknews on YouTube.

If you have a suggestion for a future episode of Game Trader, please let us know in the comments section or tweet @shacknews & @technosucks with #GameTrader.

We plan on posting at least one video each month, so be sure to subscribe to the Shacknews YouTube channel!

For more information regarding the technical trading strategy that I use follow Rob Smith from T3 Live.

Find out more about the charting software used in this video at the Official TC2000 Website.

If you found any of the terms in the video confusing, please check out Investopedia for much more educational information.

Full Disclosure:

At the time of this article, Asif A. Khan, his family members, and his company Virtue LLC had the following positions:

Long Nintendo via NTDOY ADR

Long Apple via AAPL shares and options

Asif Khan is the CEO and majority shareholder of Shacknews. He began his career in video game journalism as a freelancer in 2001 for Tendobox.com. Asif is a CPA and was formerly an investment adviser representative. After much success in his own personal investments, he retired from his day job in financial services and is currently focused on new private investments. His favorite PC game of all time is Duke Nukem 3D, and he is an unapologetic fan of most things Nintendo. Asif first frequented the Shack when it was sCary's Shugashack to find all things Quake. When he is not immersed in investments or gaming he is a purveyor of fine electronic music. Asif also has an irrational love of Cleveland sports.

From The Chatty

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    December 12, 2016 3:15 PM

    Asif Khan posted a new article, Game Trader: Should You Buy Nintendo's Stock?

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      December 12, 2016 3:20 PM

      My current portfolio consists of internet space ships.

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      December 12, 2016 3:29 PM

      Hey Shackers, this is the pilot episode of this new show on our channel. There are a few kinks to work out in the production, and I appreciate any feedback to help improve the quality of the content.

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        December 12, 2016 3:42 PM

        49 minutes will take a bit, I'll take a look though!

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          December 12, 2016 3:43 PM

          Yeah, it is definitely long. I had a lot of information to get out and I went long with the chatty Q&A.

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            December 12, 2016 6:31 PM

            Good info but I'd recommend breaking it up into sections instead of one long take. Look into some lighting and mic solutions. One still shot for 50 minutes isn't the best use of YouTube as a platform so don't expect much organic traffic outside of what your front page article refers.

            I've been long on Nintendo since 2009, having averaged my per share cost with buys last year down to the low 20s. Even if your extreme bull scenario happens I'm probably going to continue to hold long. Japanese companies cannot be hostile takeover and their IP value alone + 8b cash on hand is worth far more than the current $36b valuation.

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        December 13, 2016 8:20 AM

        the content is great, good insights, i agree with your analysis (not that that matters but it's nice), but maybe the format could be tweaked? couple ideas:

        one is segment it and toss in some graphics or whatever, set up and explain what you're going to talk about (anyone new to investing doesn't know what bull/bear, technical/fundamental, etc. are). give it more of a traditional production.

        or keep it more informal like this where you're basically chatting through the analysis. obviously you do your research ahead of time, but when you record you're sort of 'discovering' your opinion as you walk through it. for example when you were doing the technical analysis you picked out a bunch of high/low points and then said what caused them, instead of just stating it you could say "oh that's interesting, what happened there", then go to google and look up the news. that kind of thing. or maybe show the quarterly/annual reports, and highlight some things that jump out at you (as well as how to find these reports). keep it casual/more of a youtube style.

        both could work, i'd lean to the latter vs something really produced.

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      December 12, 2016 3:33 PM

      What tips do you have for a conservative, sandwich-heavy portfolio.

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      December 12, 2016 3:36 PM

      That's it. Only watched the first minute. Betting my retirement on Nintendo. If I end up in the street I'm coming after you briefcase!

      jk, this is good stuff. definitely like you said kinda rough around the edges but this is unique content that I haven't seen anywhere else!

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      December 12, 2016 4:22 PM

      Very cool video. Thanks!

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      December 12, 2016 4:24 PM

      The new Michael Pachter. Michael Shackter.

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      December 12, 2016 4:36 PM

      Quick thoughts:
      Search for a poor man's guide on casting production and see what you can add to your setup in a short amount of time. Lighting, camera placement, mic settings.
      Fundamental and Technical analysis definitions were helpful, a quick example in text form would be even better.

      And again, I'm a fan of everything that you're trying. Keep going, you're smart enough to know that one of these seeds will take.

      Food for thought, I'm about a 4/10 interest and I lasted 10 minutes.

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        December 12, 2016 5:59 PM

        Yeah I am getting better lighting and mic stuff soon. I kinda wanted to get this out the door ASAP as Super Mario Run is coming out this week. Thanks for watching!

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          December 13, 2016 7:17 AM

          should set up a monitor next to the camera to read off the the questions. you're having a conversation with the viewer, looking away from the camera to read from your phone so often is abit off putting.

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      December 12, 2016 4:37 PM

      good informative video thanks. still dont think i have the background to invest but I'll virtual invest for now

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      December 12, 2016 5:41 PM

      Ok listen. We need to have a little chat about cable management. ;)

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      December 12, 2016 5:51 PM

      Thanks for this Asif. I would love to see more content like this for dummy beginner traders like me. I bought some team green and team red a few weeks ago and now this has me thinking Nintendo. But, basically I have no clue what I am doing!

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        December 12, 2016 10:12 PM

        I was up 10% in NVDA and didn't sell -.-

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      December 12, 2016 5:54 PM

      Also, I think the show should feature Lola in some fashion. Maybe you could throw out some stock tips and see how she weighs in? Maybe a bark for buy and a growl for sell?

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      December 12, 2016 5:54 PM

      Yes, this is great content!

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      December 12, 2016 6:09 PM

      welcome to the X34 club

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      December 12, 2016 6:35 PM

      This is awesome stuff Asif! I know you could talk about this all day.

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      December 12, 2016 7:00 PM

      Dude you should start a podcast with Pachter.

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      December 12, 2016 7:22 PM

      I think this sort of angle is the most significant way you can grow shacknews in a manner that caters to the established community of old-ass gamers with income. Very cool.

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      December 12, 2016 8:51 PM

      Very cool

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      December 12, 2016 9:47 PM

      Side jack: if I wanted to invest a little money just to start and play around what would be the best website for that?

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      December 12, 2016 10:25 PM

      How can i go about buying shares? Can i buy like 10 shares? Can i cash out whenever I want?

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        December 13, 2016 6:59 AM

        NTDOY is the US listed stock. its an ADR, a stock created by a third party bank that represents foreign stocks that can't clear in the US. its basically a script that says you're entitled to x amount of the actual stock, where x is the exchange ratio the bank has set.

        for NTDOY, the ratio is 8 shares of NTDOY to 1 share of 7974 JP (its japan listing), so keep that in mind when you see the japanese price being way higher than the US price. also, NTDOF is the direct US ticker for 7974 JP, but stock can only settle in japan, so you need a japanese bank and stock account to trade it.

        NTDOY and NTDOF are both consider OTC securities, so there might be a bit of a risk due to liquidity, but there should've be too much of a price discrepancy as the underlying (japanese stock) is very liquid and market makers are limited on how far they can deviate from the underlying stock's price.

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      December 12, 2016 10:29 PM

      I really like Knorr's mushroom stock, but I can only find it at the local polish/russian import shop

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      December 12, 2016 11:37 PM

      That was really cool and I really liked it and appreciated it, you put a lot of work into it. You can tell its totally your bag, so that is cool to see too.

      Watched the whole video it was quality, if you ever do get into video game publishing I think you be really good at it. Cool info overall. Your Netflix virtual console like service idea is golden they should totally do that like tomorrow.

      Just some thoughts on Nintendo that brewed up from your video(got my juices flowing). I feel Nintendo will never go away as well, they are sort of like Blizzard people will always buy there stuff no matter what(their brand power is massive). As for Super Mario Run I think the game is going to be MASSIVE and sell more than Pokémon Go but will keep its demand and they will make sequels, and 100% be pure fire and money aka the next big thing for mobile(the stock is going to go crazy after launch). As for the Switch, I think it will hit it out of the park unless the hardware power sucks then it will be short term and niche hand held crew. Regardless people will buy the Switch but if Nintendo actually put effort into the hardware power this time it really could be massive. The hardware power is really the only factor to worry about the rest seems golden. To me the Switch seem like it will be guaranteed that it will sell way more than the Wii U(regardless of hardware power) and I would even go as far to say it is going to = Wii sales(my forecast). That be me my call on all of those things. [ puts time capsule in the ground ]

      Keep this video spot(my vote), I like it a lot and I would watch more of them for sure, feels like a natural fit for Shack's content and brings something new and cool to the site.

      Thanks for the video.

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      December 13, 2016 2:27 AM

      Very cool video, definitely a niche that isn't being filled

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        December 13, 2016 3:15 AM

        Weird hearing user names spoken out loud lol

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      December 13, 2016 2:34 AM

      fantastic content. thanks for sharing, can't wait for more

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      December 13, 2016 5:38 AM

      As someone who has always been interested in trading and has a very basic understanding of how the market works this was great!

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      December 13, 2016 6:22 AM

      thanks, this was really informative.

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      December 13, 2016 8:23 AM

      Like it a lot!

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      December 13, 2016 8:49 AM

      This is great content, well done!

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      December 13, 2016 9:15 AM

      This is good shit, Mr. Khan.

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      December 13, 2016 9:19 AM

      What a neat idea for a segment. Love it.

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      December 13, 2016 9:28 AM

      Daily gaming industry stock ticker should be on sidebar.

      These should be the icons/images for rising or falling.

      http://imgur.com/a/UYXsi

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      December 13, 2016 12:16 PM

      Love it. Right up my alley.