Image Credit: Akio Kon/Bloomberg
Image Credit: Akio Kon/Bloomberg

In the first day of trading following the announcement of a major partnership with DeNA to - among other things - bring Nintendo IPs to smart devices, the company's share value jumped a massive 21%. This was unsurprising, as a number of investors had been demanding that Nintendo move to smart devices for some time, while Satoru Iwata's limited reveal of the code named Nintendo NX hardware may have also helped with investor confidence.

In the second full day of trading - on the Tokyo stock exchange - following these announcements the trend has continued. Nintendo shares climbed another 11.83%, while DeNA also saw even more significant gains. These are easily the highest numbers Nintendo's stock have had for quite some time, as the graphs below illustrate.

These one month results show progress from the last two days
These one month results show progress from the last two days
In this graph for the last year, you can see a severe spike on the right side
In this graph for the last year, you can see a severe spike on the right side

In the opinion of some - but certainly not all - analysts, this could be the strongest period of performance for Nintendo since the golden period at the height of Wii and DS popularity. Atul Goyal, an analyst at Jefferies Group LLC in Singapore, had this to say.

There is a whole lot of upside. If they reach their previous highs in terms of earnings, which we believe is possible, we believe it can reclaim its past peak of 70,000 yen.

That is [a "target price" for the shares of 30,000 yen] in fact at the low end in our estimates.

It's all positive news for the money-men at Nintendo, which will certainly relieve some pressure on Satoru Iwata and the company's senior management. Of course, these investments are speculative at present, and by the close of 2015 Nintendo will need to be delivering the first tangible results of its smart device plans.

[source bloomberg.com]