Video Games…Get Ready for 'Girls Gone Wild' with Nintendo (NTDOY)

• Posted by Howard
• on May 31st, 2008

Gaming has been ALL about boys…until NOW. The Wii has changed things and not in some ‘itsy bitsy’ couple year trend kind of thing, but in a big ball busting trend kind of way. I have seen the future and the future is…Rachel fighting Max for the Wii.

With Nintendo (NTDOY), the boys and ‘man boys’ markets are a LOCK. If you buy the stock today you need another catalyst…I mean the cats out of the bag no? They don’t do their own retail like Apple, you can’t play the games on an iPhone and you don’t play them on Macs. That said, I think they have a giant catalyst in girls, women and the family unit. If you are skeptical and refuse to buy a Wii, go to a friends house with your family and play Mario Kart.

If you don’t already own Nintendo (NTDOY) , you can’t blame me. I have been bullish and long since the 30′s, we Wallstripped it and now a year has past. Here’s a good post of mine from last May and not much has changed in the story except the price of the stock. In gigantic stocks, waiting for 10-15 percent pullbacks can be expensive. I was not early when I got in, but I never am. Obviously the question today after it has doubled yet again…is now too late?

I could bore you with metrics but that could not help me justify anything…thank goodness though because I would be broke if I only owned cheap, low P/E stocks. I bought some more this week for me and the kids despite it being off it’s all-time high and despite the fact that I have actually sold some at lower levels for my fund.

The chart and stock trajectory is breathtaking and a spitting image of Apple . I think both companies have a lot in common in what lies ahead (girls, women and families – Apple having the big edge with their fantastic retail), but this post is not about Apple.

Girls will play the Wii. Color me not totally convinced on Wii fit, but it can’t hurt and will continue to evolve and expand.

Our biggest KnightsBridge investment to date, and our first, was last year GreenScreen Games . One of their studios – SuperVillain (Tony Hawk) – has the major game launching and it’s for a market that is not their bread and butter – anyone but a boy.

Check out the next big type of gaming hit (click on image to enlarge):

The ‘girls, women and family unit’ is not factored into today’s prices because ANALysts have nothing to really compare it too. That’s good..

Gamestop (GME), despite my hate, has an almost monopoly and everybody is and will gun for that market – EXPANDING THE PIE. Best Buy (BBY), also despite my hate, can’t sell laptops, PC’s, washing machines, flat screens or music for profit anymore. But gaming…

PlayNTrade is one of the fastest growing franchises and I love this local Phoenix franchise idea of Gamestop on wheels called ‘The Game Truck ‘.

I am of the feeling that Nintendo could go wild still. I mean it gets Nasdaq ‘Pink Sheet’ love only and although the brand is everywhere, NOBODY owns the stock.

Do you? Better yet…does your cab driver?

PS – I still stand by my statement back in my March 2007 post…’If marijuana is legalized, all the gaming stocks double again overnight!’

PSS – I did a whole bullish trend scenario for gaming and did not mention ‘Guitar Hero’ or ‘Rock band’ even ONCE (until now :) ).

PSSS – When I think of ‘Breathtaking’, I think of Seinfeld (also the ‘Shrinkage’ episode):

PSSSS- Going offblog until Wednesday as the Lindzon’s hit the road for the summer. Don’t do anything crazy.

Disclosure – Long Nintendo, Electronic Arts and GreenScreen Games.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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