Theme in 2008 (Part 2)

Part 2 will be very short. And I think I'm going to look to put up my money tomorrow to buy a little bit for this part 2.

Besides investing, I like video gaming. Although I'm not a huge big fan of Nintendo Wii (I do have one but played less than my PS2 and 3) and Nintendo DS, but you have to acknowledge that the Wii and DS are very popular among groups from young to old, and of course they made a lot of money on it.

It comes in no surprise that Wii and DS continued to top the holiday shopping gift lists throughout 2007. With more titles and games hitting the stores during the Christmas season, you will see the consoles out of supply very quickly again. Yes, it's 2006 Christmas all over again.

Nintendo (NTDOY.PK) only trades on pink sheet, not much trading volume, and it went up more than 150% from last year already. With a console that is not expensive to produce but comes out as a big hit, owning Nintendo gives me confidence that the downside is not as much as other tech stocks. If you buy into a video game software company you may face a risk that they cannot release hot games, but buying Nintendo helps you to diversify that kind of risk.

As well, I can see Wii and DS have a lot of party games or multi-player games. Those games are good interface to connect people. Many people liked to be connected (that is why facebook becomes so popular so quickly). Players enjoyed the experiences to play together, comparing scores, and even compare the characters (Mii) they created. It's like Apple's product, everybody has it and if you don't have one, you feel isolated from people.

I will look into the market tomorrow and consider buying NTDOY from there. I was already late to buy into Nintendo last year. I still think there are (at least) a few good years for Nintendo Wii and DS, my guess is potentially a 30% to 50% upside in 2008, 100-day EMA should provide good support.