Console Stocks All Trading Near Lows

Consoles - XBOX 360, Wii, PS3

What do the parent companies that make the XBOX 360, Wii, and PS3 all have in common? 

Microsoft (MSFT), Nintendo (NTDOY), and Sony (SNE) shares are all trading 9% and under from their respective 52-week lows.  Either this is madness, a great time to buy, or just a sign of the times.


Microsoft Corp (MSFT) shares are at at $25.78 today, 8.26% from its 52-week low.   Over the past 12 months Microsoft Corp (MSFT) shares have traded between $23.65 and its 52-week high of $29.46.  Microsoft now trades with a P/E Ratio of 9.4 and EPS of 2.75.  Mr. Softy pays a 20 cent quarterly dividend for a 3.1% annual yield.

Nintendo ADR (NTDOY) shares are 2.75% from its 52-week low and trading today at $17.12.  Over the past 12 months Nintendo ADR (NTDOY) shares have traded between $16.65 and its 52-week high of $38.60.

Sony (SNE) shares are 9.42% from its 52-week low trading today at $17.84.  Sony also pays out a quarterly 16 cent dividend for a 1.7% annual yield.


MASTERY Bottom Line (Street Fighter Style)


Bottom line:
Fellow Masters, despite who you think is going to win the console wars this holiday season of 2012 what can't be denied is how low these stocks are trading. 


Its too bad the XBOX 360, Wii, and PS3 aren't the only products these companies sell.  As investors we don't have that option of just investing in their most profitable business divisions.


There are a ton of reasons to like SNE, MSFT, and NTDOY.  They are all down on their luck and Wall Street has fallen out of love with them all.  For once the entire console sector is trading at the bottom.  In 2011 shares of Sony and Nintendo are down more than 50% while Microsoft has dropped 7.4%.  Its not pretty, but that's why we are bringing these stocks to your attention.  Think comeback kids, one of these companies (if not all three) have the potential to climb 15% from their current level in the near year. 


We like in order of buying interest: MSFT, then NTDOY, and finally SNE (see charts below).


Besides the XBOX 360, Microsoft could have a hit on its hand with Windows 8 due sometime in 2012.  It looks amazing:



 


 


CHART LAND


sne


 


msft


ntdoy

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