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Reuters: Nintendo shares rise after filing shows BlackRock owns 5 pct stake

http://www.reuters.com/article/us-nintendo-stocks-idUSKBN16U014

Nintendo Co Ltd (7974.T) shares rose as much as 2 percent on Thursday after a regulatory filing showed BlackRock, the world's largest asset manager, owns over five percent of stock in the Japanese games maker.

BlackRock owns a 5.17 percent stake in Nintendo, the filing, which was issued on Wednesday, showed.

The benchmark Nikkei average .N225 average was up 0.1 percent in early morning trade.

I assume it's a 10-K filing (the SEC mandates disclosure if you acquire more than 5% of a public company). Looks like big finance is making some serious bets on the Switch.
 

Plum

Member
Doesn't mean much. If GAF Predictions Ltd. had purchased a 5% stake then we'd be talking. They're always right.
 

ggx2ac

Member
Keep in mind Nintendo's stock value is around ¥28,000 right now. It is around the same value when Pokémon Go released which before​ that hasn't been that high since 2011.
 

BD1

Banned
5% is not a small number for a single entity. I wonder where they rank in terms of overall ownership of the company. I believe the Yamauchi family were the biggest shareholders, but that may have changed in recent years.


edit: DO0MED!
 

LordRaptor

Member
Nintendo have a lot of institutional shareholders because they're a reliable fiscally conservative company and pay dividends even when they take a loss - which they hardly ever do.
 

ggx2ac

Member
Are we sure it's not because Super Mario Run on Android?

There's other factors like US politics affecting Japanese investors.

The market's greatest concern is that two of the president's goals that have excited investors the most -- a corporate tax cut and increased infrastructure spending -- could stall. So-called "Trump stocks" dipped here Wednesday in a reflection of that fear. These stocks became popular for their companies' high proportions of U.S. earnings, which set them up to benefit from lower taxes, and their position to reap the rewards of expanded infrastructure investment.

As the market continues to be tossed about by the unconventional president's governing style, investors have begun to take a more risk-off approach, seeking refuge in stable stocks.

Among these safe havens are cash-rich issues.
Nomura Securities has designated a number of companies as such, based on what proportion of their total assets is net cash -- i.e., minus interest-bearing liabilities. The majority of these names, including Nintendo and IT security provider Trend Micro, have outperformed the Nikkei average this year.

http://asia.nikkei.com/Markets/Toky...e-US-spring-storm-rattles-Tokyo-stocks?page=1
 

gogogow

Member
5% is not a small number for a single entity. I wonder where they rank in terms of overall ownership of the company. I believe the Yamauchi family were the biggest shareholders, but that may have changed in recent years.


edit: DO0MED!

IIRC, when Hiroshi Yamauchi passed away, Nintendo bought all the shares back.
 

gogogow

Member
What is an "asset manager" ?

From BlackRock's website:

BlackRock is trusted to manage more money than any other investment firm*. Our business is investing on behalf of our clients — from large institutions to parents and grandparents, teachers, nurses, doctors and people from all walks of life who entrust their savings to us.
 

The Judge

Member
To put some numbers in perspective for everyone:

BlackRock owns 5% stake in many companies. They manage over 5 trillion USD, in which about half is equity stakes. That's 2.5 trillion dollars dedicated to shares.

Nintendo's market cap is around 4 trillion yen, which is roughly 35 billion dollars. 5% of that is 1.8 billion dollars. Which is 0.072% of BlackRock equity investments.

While almost 2 billion dollars is an expressive investment amount, it's a small percentage of BlackRock's investments. For example, they have about 2.7% of Microsoft shares, which sums up to 13 billion dollars.

Edit: the fact that they raised their ownership indicates they see good potential for the stock's performance, of course. However, means absolutely nothing in terms of controlling the company or anything like that.
 

microdot

Member
To put some numbers in perspective for everyone:

BlackRock owns 5% stake in many companies. They manage over 5 trillion USD, in which about half is equity stakes. That's 2.5 trillion dollars dedicated to shares.

Nintendo's market cap is around 4 trillion yen, which is roughly 35 billion dollars. 5% of that is 1.8 billion dollars. Which is 0.072% of BlackRock equity investments.

While almost 2 billion dollars is an expressive investment amount, it's a small percentage of BlackRock's investments. For example, they have about 2.7% of Microsoft shares, which sums up to 13 billion dollars.

Edit: the fact that they raised their ownership indicates they see good potential for the stock's performance, of course. However, means absolutely nothing in terms of controlling the company or anything like that.

So the 2% rise is due to shareholders valuing BlackRock's reputation?

*edit: I saw your edit. I didn't know a shareholder could affect the market value of a stock. Thanks
 
Man I wish they were listed on the NYSE, I was really tempted to buy them after the Wii U bombed but it's so difficult figuring out how to do it from the US, and now they're shares are too expensive for me.
 
Man I wish they were listed on the NYSE, I was really tempted to buy them after the Wii U bombed but it's so difficult figuring out how to do it from the US, and now they're shares are too expensive for me.

You can buy ntdoy shares fairly easily, my brother owns one
 
I wouldn't read into this too much, if at all.

BlackRock runs a ton of exchange-traded funds (ETFs) that track underlying indices and some of those had a major 'rebalancing' this past week. I will spare the gritty details, suffice it to say it's not that BlackRock is actively 'betting' on Nintendo, they are purchasing blocks of shares in order to replicate the underlying index of stocks which includes Nintendo among many others.

It just so happens Nintendo is among stocks being added to those indices rather than removed, which means big ETF providers like BlackRock (and State Street, Vanguard etc) are buying shares hence driving both their ownership and ultimately the stock price upwards. It's common for these firms to own 5% even more of public firms across all the ETF/fund products they offer to investors.

(I am familiar with this because I work in indexing, and yes it's most definitely as sexy as it sounds. Hah.)
 

Makonero

Member
Not enough of NIntendo's shares are publicly traded for any sort of takeover to be viable, and of the shares that are publicly traded, Nintendo are still the majority holder IIRC.

once they bought back the yamauchi heir stock, they were sitting pretty
 

Justin Bailey

------ ------
I wouldn't read into this too much, if at all.

BlackRock runs a ton of exchange-traded funds (ETFs) that track underlying indices and some of those had a major 'rebalancing' this past week. I will spare the gritty details, suffice it to say it's not that BlackRock is actively 'betting' on Nintendo, they are purchasing blocks of shares in order to replicate the underlying index of stocks which includes Nintendo among many others.

It just so happens Nintendo is among stocks being added to those indices rather than removed, which means big ETF providers like BlackRock (and State Street, Vanguard etc) are buying shares hence driving both their ownership and ultimately the stock price upwards. It's common for these firms to own 5% even more of public firms across all the ETF/fund products they offer to investors.

(I am familiar with this because I work in indexing, and yes it's most definitely as sexy as it sounds. Hah.)

Nah dude Blackrock played BotW and they were like fuck yeahhhhhhh open world investing
 

Kareha

Member
OT but I'm sure Blackrock is who our old Chancellor of the Exchequer does 4 days of work for per month as one of his 6 jobs he has.
 
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