I wouldn't invest in any of these. But if you're deadset on the idea, here's what you're looking at:
Nintendo
Very pricey, very low volume. It's got another listing that prices it at 62.25, but that's still expensive, and with low volume. It also trades sporadically on the Pink Sheets, which is a hotbed for scamming on the US Exchanges. You'll get all sorts of crap listed there, including a lot of international companies which are interested in nothing more than a pump and dump to steal peoples' money to fund their early development. Now Nintendo obviously isn't in the same boat, since it's obviously an established company. But nothing about its charts are suggesting it's a good buy right now. With resistance just above $70 on the cheaper listing, the upside potential is limited.
Sony
This one's a better contender, listed on the NY Exchange, and trading for a little over $40. It also happens to be sitting at an important support level at the moment - though I should caution you that you don't want to be buying right now unless you like to gamble, because a stock sitting on support could just as easily fall through as it could bounce off. If it does fall through, the picture is not pretty. The lowest it has gone in two years was a brief stint to 37.50, but it could fall much lower in this economic climate. As far as upside, you could make a relatively significant gain if it bounces back as it did the last time it was at these levels, but that's far from a guarantee, especially since it failed to climb back above $55 where it was sitting in January. Realistically, I'd say your resistance is at about $50 right now.
So the stock's in decline right now. If you like to gamble and see it break above 42.50 (current short-term resistance), you may consider it for a short-term trade. But it's a risky investment. Given the bearish overall market sentiment, I wouldn't put money on a bet that this is the bottom.
Microsoft
Microsoft is better than Nintendo, but it's still a weak looking chart. Change the time scale to 2 years and you'll see what I mean. Long term support at 27.50 has been violated. That means that it's worthy of consideration for short selling, but a lousy candidate for buying. And there's plenty of resistance below $30. So stay away from it for now.
Of the three, I'd have to go with the majority and say that Sony is the only one that merits any consideration whatsoever right now. And as I mentioned before, I would definitely not be investing in it for myself. None of this deals with the company's fundamentals, though, so if you really believe one of these three has the right competitive advantage to beat out its competitors in the coming years, that's your choice. But I just trade the charts. If a company is doing something worthwhile, it'll have a good chart pattern.
Log in to comment