Japan Inc.’s push to unwind cross-shareholdings is throwing up investment opportunities—just look at Nintendo.
The Japanese gaming giant has lost nearly 40% of its market value since a peak in January last year, underperforming the broader stock market and rivals like Sony. That’s despite the popularity of its latest gaming console, Switch. Since its launch in March 2017, Nintendo has sold 32.3 million units, which compares favorably with sales of other hit consoles like the PlayStation 4 at a similar stage.
That’s a lot of coin.
Share buyback only demonstrates that company management is weak and timid.
*Worse use
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Nintendo plays winning Japanese buyback gameThe Super Mario maker is repurchasing $300 mln of stock and cancelling hoarded shares as owners like Bank of Kyoto adapt to new cross-holding rules. Buybacks can be a poor use of cash, but with Japan Inc holding $4 trln in reserve Nintendo is joining a worthwhile movement. ReutersBiz jgfarb No one cares.
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