Short sellers double down on Nintendo
27 July 2016 Kyoto
Image: Shutterstock
After a sluggish start, short sellers are making up for lost time by quickly building their positions in Nintendos 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矇mon Go, S3 Blacklight, a US data analyst, recorded a 27 percent drop in Nintendos 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矇mon Company, which manages to franchise, and initially began to draw short interest after it clarified its exposure to Pok矇mon Gos success and confirmed it would not be revising its future earnings forecast upwards, despite the games global popularity.
The Japanese videogame company described Pok矇mon Go-related revenues as limited and stated that it had already been incorporated and gains from the games success into its revenue forecasts, in a statement on 22 July.
Nintendos Q1 results revealed an overall loss of JPY 5.1 billion (US $49 million), primarily as a result of the strong yen.
Following the recent release of the global gaming phenomenon Pok矇mon Go, S3 Blacklight, a US data analyst, recorded a 27 percent drop in Nintendos 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矇mon Company, which manages to franchise, and initially began to draw short interest after it clarified its exposure to Pok矇mon Gos success and confirmed it would not be revising its future earnings forecast upwards, despite the games global popularity.
The Japanese videogame company described Pok矇mon Go-related revenues as limited and stated that it had already been incorporated and gains from the games success into its revenue forecasts, in a statement on 22 July.
Nintendos 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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