Author Topic: Nintendo to Buy Back Almost 8% of Company Stock  (Read 1440 times)

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Offline SurfingPikachu

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Nintendo to Buy Back Almost 8% of Company Stock
« on: January 29, 2014, 06:13:49 AM »

Now could be a good time to sell your stock.

http://www.nintendoworldreport.com/news/36426

Nintendo will be buying back up to 10,000,000 shares of their own stock, the company announced today. The move was decided following a meeting of the Board of Directors and will be pursued in accordance with the Japanese Companies Act.

The number of shares to be acquired reflects 7.82% of stock in the open market and will be purchased using up to 125,000,000,000 yen ($1,209,250,000) from January 30 to March 31 on the Tokyo Stock Exchange.

Nintendo stated the reason for the acquisition was to “improve capital efficiency as a flexible capital policy in accordance with changes in the business environment.”

As of September 30, 2013, Nintendo owned 13,793,439 shares of the overall the company’s 141,669,000 stock. This is roughly 9.74% of the overall shares.

Kimberly Keller - Staff Writer

Offline Adrock

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Re: Nintendo to Buy Back Almost 8% of Company Stock
« Reply #1 on: January 29, 2014, 07:46:15 AM »
Good. I hope Nintendo continues to buy back shares in the future. Any investor who pushes for Nintendo to develop games for smart devices would be better off selling their shares because they have no idea what Nintendo's greatest assets are.

Offline Shaymin

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Re: Nintendo to Buy Back Almost 8% of Company Stock
« Reply #2 on: January 29, 2014, 08:12:30 AM »
Doing the right thing and going private is going to be quite difficult if 100m shares is 8%.
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Offline Ceric

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Re: Nintendo to Buy Back Almost 8% of Company Stock
« Reply #3 on: January 29, 2014, 09:27:32 AM »
Doing the right thing and going private is going to be quite difficult if 100m shares is 8%.
They could effectively go private with vastly less then 50%.  With that many raw shares in the wild and over a Billion Dollars to just buy 8% I really don't there are any individuals that hold more then 8% of the shares and that there are a small enough group of people with enough shares to have voting rights who could be convinced to all say the same thing to overcome Nintendo's 17%.
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Offline oohhboy

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Re: Nintendo to Buy Back Almost 8% of Company Stock
« Reply #4 on: January 29, 2014, 10:12:17 AM »
The number of shares is immaterial, it is the total value of the shares (Market Cap) and how much of that you own is what counts. Going private is another matter altogether as something like that usually requires a greater than majority vote and mandatory share buy backs.

Also the type of stock is important as they can have different rights and voice in voting. If you brought 51% of a company in non-voting stock, you won't "own" the company and have no rights to vote. The only actions you can do is take no action or to sell.
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Offline Stogi

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Re: Nintendo to Buy Back Almost 8% of Company Stock
« Reply #5 on: January 29, 2014, 10:34:25 AM »
Sell my stock? Maybe. By the time their done, it should hit rock bottom. The smart thing to do would be to buy double as much stock that I own now and lower the overall cost of my stock.

I think I'll do that.
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Offline Ian Sane

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Re: Nintendo to Buy Back Almost 8% of Company Stock
« Reply #6 on: January 29, 2014, 12:09:06 PM »
Well hopefully this will keep Nintendo from any inane mobile ideas.  Nintendo has lots of problems but going mobile isn't the solution.

Offline smallsharkbigbite

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Re: Nintendo to Buy Back Almost 8% of Company Stock
« Reply #7 on: January 29, 2014, 06:56:35 PM »
http://en.wikipedia.org/wiki/Treasury_stock


"A company cannot own itself. The possession of treasury shares does not give the company the right to vote, to exercise preemptive rights as a shareholder, to receive cash dividends, or to receive assets on company liquidation. Treasury shares are essentially the same as unissued capital and no one advocates classifying unissued share capital as an asset on the balance sheet, as an asset should have probable future economic benefits. Treasury shares simply reduce ordinary share capital."
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[/size]Nintendo can't buy itself into becoming a private company.  A group of investors (really rich investors) could buy up Nintendo stock and take them private, but this is little more than trying to prop up their share price.  If a company had 2 shares, I owned 1 and Adrock owned 1 (resulting in each of us being 50% owners) and the company bought Adrock's share I am defacto 100% owner of the company.