Atlus Acquisition, Earnings Adjustment Strengthen Investor Confidence
Something positive happened for Sega and its parent company late last week that most didn’t notice: Shares in Sega Sammy Holdings hit fresh multi-year highs on both the American and Japanese stock markets.
In the US, SGAMY soared to $7.26 a share, a level not seen since January of 2007. In Japan, Sega Sammy also soared to a stock price not seen in at least five years, breaking the 3,000 yen mark to ¥3,015 a share. Both prices have since leveled off a tad.
Two major influences likely had an impact on both the price hike and its fall. The first, no doubt, was Sega Sammy’s acquisition of troubled Index Corporation, the owner of developer Atlus. But the investor glee was short lived as Sega Sammy also revised its earnings forecast on Friday, keeping its Net Income forecast steady at ¥9 billion, but adjusting sales forecasts down nearly 20 percent, and operating income more than 40 percent. The company pointed to slowing Pachinko and Pachislot sales behind the revision.
Currently on the OTC markets, SGAMY is sitting at $6.96 a share5