Unlike Disney, which has leveraged its library of characters to develop cash-generating entertainment franchises such as Star Wars and Avengers, Nintendo has focused solely on making the best video games possible. Ignoring the opportunities to leverage characters such as Mario, Luigi, Donkey Kong, Link and Zelda has been a missed opportunity. But now Nintendo might be coming around. The Super Mario Bros. Movie, released in April, has grossed $1.16 billion worldwide. Not only that, but Nintendo just released The Legend of Zelda: Tears of the Kingdom, which could be the company's biggest software release in years. YOUR ACTION PLAN If Nintendo (OTC: NTDOY), which trades for around $10, can combine the profitability of its software with movie franchises, it will look like a bargain. A move back up to its '21 highs around $15 seems more than reasonable. P.S. Here's why I believe we'll soon see the "Next Major American Index." When the Dow was created in 1885 (well before computers and the internet), the only way to calculate a market indicator was to add up its components' share prices and divide by the number of components. So that's exactly what Charles Dow did with the 30 components. And that's how the index's value is calculated to this day. When the S&P 500 was launched in 1956 (still a long time ago, in the grand scheme of things) technology had advanced to the point that the S&P could base its new market metric on its component companies' total stock market values - rather than on their share prices. But that methodology still has flaws. For instance, in the first quarter this year, just seven (7) stocks supported the entire market: Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla. Combined, they accounted for 82% of the S&P 500's return in the quarter - a statistic that I find both shocking and alarming. Takeaway: Why You'll Soon See the "Next Major American Index" The S&P 500, which is widely considered the broadest market exchange on the planet, was created 67 years ago. Since then, a lot has happened - which is why we need a new major American "index" to reflect today's new market environment. And I have reason to believe that I know which asset will soon assume that role. I posted a new video explaining my reasoning and revealing the exact pick, which you're invited to view below: Yes! Show Me the "Next Major American Index" |
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