Short sellers double down on Nintendo 27 July 2016 Kyoto Reporter: Drew Nicol
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After a sluggish start, short sellers are making up for lost time by quickly building their positions in Nintendo鈥檚 stock, with short interest rocketing up more than 400 percent in the past week, according to S3 Blacklight.
Following the recent release of the global gaming phenomenon Pok茅mon Go, S3 Blacklight, a US data analyst, recorded a 27 percent drop in Nintendo鈥檚 share price as of 25 July, down from its year-to-date high of JPY 31,770 (US$301.2) on 19 July.
Nintendo owns a 32 percent stake in The Pok茅mon Company, which manages to franchise, and initially began to draw short interest after it clarified its exposure to Pok茅mon Go鈥檚 success and confirmed it would not be revising its future earnings forecast upwards, despite the game鈥檚 global popularity.
The Japanese videogame company described Pok茅mon Go-related revenues as 鈥渓imited鈥� and stated that it had already been incorporated and gains from the game鈥檚 success into its revenue forecasts, in a statement on 22 July.
Nintendo鈥檚 Q1 results revealed an overall loss of JPY 5.1 billion (US $49 million), primarily as a result of the strong yen.
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