Sony Corporation (ADR) (SNE), Komatsu Ltd (ADR) (KMTUY): Is Japan’s Surging Stock Market Hiding a Dangerous Risk?

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Sony Corporation (ADR) (NYSE:SNE)’s rival in the gaming space, Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY), is an example of how weaker firms aren’t able to capitalize as successfully from the Japanese economy’s gains. Despite the weak yen, Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY)’s results have come in poorly, as the company has struggled to sell its next-gen Wii U game system. Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY) still turned a profit for its most recent quarter — and shares are up more than 22% year to date – but this company’s heavily reliant on the weak currency to boost its struggling business. As Sony Corporation (ADR) (NYSE:SNE) and Microsoft Corporation (NASDAQ:MSFT) prepare to release next-generation game systems themselves this holiday season, Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY) has to ramp up sales fast – or risk being left behind in the battle for next-gen preeminence.

The article Is Japan’s Surging Stock Market Hiding a Dangerous Risk? originally appeared on Fool.com and is written by Dan Carroll.

Fool contributor Dan Carroll has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft.

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