Barron's: Nintendo shares oversold
Despite recent share drops, strong growth should resume this year
Financial magazine Barron's has reported that Nintendo shares are oversold, and that the Japanese company's strong growth is expected to resume later this year.
According to a Reuter's report on the full Barron's article, investors have sold Nintendo shares prematurely, causing an artificial deflation of the company's share prices.
Nintendo shares were hit after the company reduced its expectations for the 2009 fiscal year in January, due mainly to Japan's weak economy and the declining performance of the Wii in Japan.
According to the report, which was released over the weekend, Nintendo has beaten profit expecations for the year ending March 2009, bringing in USD 5.6 billion in operating profit.
Analysts expect that Nintendo earnings will rise in fiscal year 2010, and that overall videogame sales will rise as soon as the second half of 2009.