Can Mario Bring in the Coins? – Sony Corporation (ADR) (SNE), Microsoft Corporation (MSFT)

While the company has struggled as of late, solvency and liquidity are not an issue for the company as they have no debt. Nintendo can afford to ride out the rough patch it’s currently going through. The company also has a P/B ratio of 1, reinforcing the position that it is undervalued.

While management has been very tight-lipped about what games are in development, there are rumors that Nintendo is going all out for E3 (June 11-13), the biggest video game expo of the year, with multiple first party, blockbuster games. This would make a lot of sense for Nintendo, who is looking to steal some thunder from the new consoles that Microsoft Corporation (NASDAQ:MSFT) and Sony Corporation (ADR) (NYSE:SNE) will be touting.

The video game industry usually follows a cyclical path, making timing a very important factor. The company appears to be at an undervalued price point right now, but E3 will be the true indicator of where this company can go. I’d strongly suggest keeping an eye on their performance and stock price until the expo, and making a decision after we see what Nintendo has to offer.

The article Can Mario Bring in the Coins? originally appeared on Fool.com and is written by Mark Joerling.

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