CAN YOU BUY NINTENDO STOCK IN AMERICA?

NTDOYIf you want to buy Nintendo stock you have to use an online broker that allows you to purchase ADR’s. Without going into details, American Depository Receipts are traded in United States dollars during the same hours the U.S. markets are open and they are traded through any of the main U.S. brokerages. ADR’s allow investors to buy stocks in foreign companies that are listed on foreign exchanges as though they were listed on any one of the American exchanges.

In this case, Nintendo is listed on the Tokyo Stock Exchange which makes it very difficult for non Japanese investors to buy its stock. But luckily you can buy the Nintendo ADR as simply as you would buy any other stock.


Buy Nintendo Stock Using Ticker Symbol NTDOY

You can look up NTDOY just like you would any other ticker symbol to see what it is trading for. But you might not be able to buy the stock if you are using one of the free platforms such as Robinhood or Loyal3 which is one of the reasons I never recommend them. Yes, free stock trading is great but it does come with restrictions and the free trading sites come with a lot of unknowns that serious investors should avoid. 

NTDOY can easily be purchased though, if you use one of the main online brokers such as TD Ameritrade, E*Trade, Merrill Edge, Scottrade, OptionsHouse, or Charles Schwab. I personally recommend OptionsHouse because of its low $4.95 per trade fees and its consistently good performance in Barron’s yearly broker rankings. On the 2016 broker rankings chart, you can see that OptionsHouse is listed right near the top in 3rd place. Why pay double the fees other brokers charge when OptioinsHouse gives you cheaper fees and such a highly rated platform?


Should You Buy Nintendo Stock?

In mid July 2016, Nintendo stock doubled within days after the mobile game Pokemon Go burst on the scene. Never in the history of Apps had there been a game that was such an immediate hit and investors erroneously assumed that Nintendo would be a big beneficiary of the profits. But as the reality that Nintendo only had a small stake in the company that developed the game (Niantic, Inc.) as well as a small stake in The Pokemon Co., NTDOY stock started to head back down. 

One thing Pokemon Go did though, was show that the intellectual property that Nintendo does own is EXTREMELY valuable. One can only wonder what any mobile Mario Brothers game, new or old, would make profit wise. Likewise a new (or old) Zelda game for the phone would undoubtedly be THE topic of conversation for months as gamers of all ages would flock to play. 

Nintendo makes games arguably better than any other software developer and the franchises it owns could be worth billions if only the company would adopt a mobile game strategy. Additionally, the new game console (NX) will come out in 2017 and the upcoming The Legend Of Zelda: Breath Of The Wind was the undisputed star of just completed E3.

So, while Nintendo may not profit materially from Pokemon Go as much as originally believed, the game did show the enormous potential of its franchises. So far, Nintendo has mostly resisted mobile gaming (it does have several titles coming out later in the year in collaboration with DeNA) and there is no way to know when or if a concerted change in strategy will ever take place. 

Investors today who buy NTDOY are hoping that the company will sometime in the future unleash the awesome potential of its intellectual property. If the stock price goes down nearer $20, I might be tempted to jump on the bandwagon and buy some shares myself. 


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