Managing Partner at Fresco Capital, Fresco Capital

Tytus Michalski

Managing Partner at Fresco Capital

Fresco Capital

Equity Bottom-Up

Nintendo's market value has increased by more than US$10B in less than 1 week because of a video game. There are credible analyst reports suggesting the immediate profit potential from this game is <a href="https://www.smartkarma.com/lab/compose/4681/blogs.barrons.com/asiastocks/2016/07/10/how-would-pokemon-go-affect-nintendos-earnings/" target="_blank">minimal</a>. So it seems like an obvious short candidate.Not so fast.1. Revenue option valueIt may be just a game, but Pokémon GO is already having a noticeable impact on <a href="http://www.inc.com/walter-chen/pok-mon-go-is-driving-insane-amounts-of-sales-at-small-local-businesses-here-s-h.html" target="_blank">revenues at small businesses</a>. It doesn't take much of an imagination to make the leap to sponsored locations. Even if Nintendo doesn't…

Nintendo's market value has increased by more than US$10B in less than 1 week because of a video game. There are credible analyst reports suggesting the immediate profit potential from this game is minimal. So it seems like an obvious short candidate.Not so fast.1. Revenue option valueIt may be just a game, but Pokémon GO is already having a noticeable impact on revenues at small businesses. It doesn't take much of an imagination to make the leap to sponsored locations. Even if Nintendo doesn't…

Nintendo: Virtual Options Have Real Value