I’ve been gone for a while.
I’ve ignored your emails, your calls, your knock-knocks at my door (befuddled how you bypassed gate security, even after I instituted a new staff). You’ve tweeted $TWTR, you’ve Facebooked $FB, you’ve tried to Skype me like some high end camgirl. I’ve been away, Gentle Investor.
For what reasons I’ve been gone matters not, though I have popped my head above the surface in the last few months telling you I went “all-in” on Tesla $TSLA on 8/5/14 just like I went all in on Las Vegas Sands $LVS in March of 2009 (that was on Twitter @CashBauer, I thank you). That move alone has me up 13% which is better than any tip your elevator guy, broker, neighbor, or trading buddy has told you. If you’re new to me, I’ve been in (and preaching Tesla) since the car fires back in 2013. For reference, please read “A Mess-la at Tesla?! $TSLA $AAPL $BA” at http://atthemoney.com/tesla/ , published on 10/3/13, which puts my initial investment up +55%.
But I’m not here to pat myself on the back. You already know who I am. You’re here, aren’t you? You don’t need to see pictures of my 10-month old decked out in only Ralph Lauren $RL. You don’t need to see my extravagant vacations to Vegas at the $WYNN “just for a night.” You don’t need to see the Range Rover I or the Range Rover II. No. You just need to peruse my past articles and tweets to see what up with that (https://screen.yahoo.com/movies-000000505.html). $YHOO
So forgive the long introduction rant, but obviously I’ve emerged from my cocoon because I’ve found something. Yes, the market is the highest it’s ever been. Yes, we think America is BACK! Yes, baseball is entering the postseason and YES NFL is starting! Things could never be better, right?
This is where you tread very, very carefully, Gentle Investor. For the most part, the investing community has chosen to ignore Rootin’ Tootin’ Putin. They’ve chosen to forget Ice Ice ISIS. They’ve forgotten our country can be so easy divided by the killing of a robbering thug by one of our hero police officers. This is all TROUBLE and it’s being ignored. For me, that means I won’t invest in any of these high multiple stocks. This means that while I researched my picks before, now I will RESEARCH my picks. After all, every investment is my livelihood, is it not? Isn’t it yours too?
So isn’t it bizarre that the stock I come out of the woodwork for is…Nintendo $NTDOY?! The bronze or runner up finisher to the Xbox One $MSFT and the Playstation 4 $SNE is the subject of my come back post?! SAY WHAT?!
But as I was browsing the Amazon $AMZN best-sellers today in the videogame bracket, I noticed that 9 of the top 20 best-sellers in the video game section as a whole (8/30/14) belonged to Nintendo. How is that possible? Despite Sony and Microsoft releasing brand new systems that have dominated the industry over the last 6 months (with the Wii U failing), how is Nintendo somehow controlling the best sales meter we currently have in Amazon?
Amiibo. I can’t pronounce that. I’m an older gentleman alive during the Korean War. But I’m a gamer and I know more than your famous CNBC pundits who “live through their kids.” But this Amiibo is basically a plastic figure that unlocks portions of a master game (which also costs money). Guess who else did this? Activision $ATVI did it with Skylanders. Disney $DIS did it with the Infinity. And guess what? PROFITS SOARED.
Breaking this phenomenon down to its simplest form, let’s imagine a middle class child’s birthday party. Let’s say they love Disney Infinity and the entire Disney Universe. They ask Uncle Don and Grandma Vi for the videogame and both relatives rightfully balk at today’s industry standard of a $59.99 MSRP. Guess what they don’t balk at? A $14.99 in-hand toy/figurine that unlocks chapters and adventures within a game. It’s like buying content within an iPhone ($AAPL) game! It’s JUST a few bucks (plus the little bastard gets a figurine), and JUST a few clicks.
And don’t you think that Disney and Activision have ramped up their advertising? Don’t you think that Nintendo soon will? Mario is more popular than Spyro the Dragon, though I’d argue Princess Elsa is more popular than Princess Peach…but Nintendo owns a generation that began back in 1986!
Which name do you recognize first?
Mario or Roller Brawl?
Donkey Kong or Twin Blade Chop Chop?
Pikachu or Fire Kraken?
Nintendo has the fan base and the characters built in. There’s no need to roll out a campaign to familiarize and educate the public with their figures.
So while both Activision and Disney have done WAY more campaigns than their figurine toy unlockings (FTU) in the past few years, maybe we could look at both of the company’s charts since they instituted them? Yes, there’s been Captain America and the ramp up for Star Wars and other amazing opportunities for both companies, but let’s just take a little peek.
Since Activision unleashed Outlanders on 10/13/11, their stock is up +82.2%. Since Disney unleashed the Infinity platform in August of 2013, their stock is up +37.52%. YES they had other things at play! YES other games triumphed! But don’t we think the FTUs might have had a role?
Nintendo is very, very close to its one year lows ($12.93 on 5/8/14). Seeing they are about to release their assault of FTUs on 12/31/14 and that the pre-orders are already eclipsing amazing Christmas games has me willing to put some of my funds into them. Yesterday Nintendo even announced their new 3DS handheld will let you be able to put one of these stupid little Amiibo things right on it! That’s how much they believe in it.
Cash Bauer is a buyer under $14.25…I’m even looking at moving some of my Tesla funds into them. I’ll see you at the money. Hope you like the new domain name!