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Nintendo Shares: So, So Oversold

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According to financial experts Barron's, shares in Nintendo are now "oversold". Sounds bad!

"Oversold" basically means that shares in a company have fallen too far, too fast. Like a knee-jerk reaction. Or, like what's happened to Nintendo shares over the past few weeks, as falling sales data (particularly in Japan) has led many bandwagon jumpers to bail on the company.

But all that really does is clear more room on the bandwagon for investors with a little more staying power. See, "overselling" leaves share prices lower than they should be. So if you step in now, Barron's are saying by tagging them as "oversold", and you're basically picking up a bargain, as it's expected the shares will rebound when everyone comes to their senses and remembers that Nintendo is renowned for (in Barron's words) a "strong balance sheet, its capacity for boosting its dividend and shares that are priced reasonably relative to the company's projected growth."

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Nintendo shares oversold: report [Reuters]