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NIS Stock Loses 23% of its Value in Two Days - VGChartz
NIS Stock Loses 23% of its Value in Two Days

NIS Stock Loses 23% of its Value in Two Days - News

by Thomas Froehlicher , posted on 21 May 2019 / 1,290 Views

After Nippon Ichi Software announced last Friday that it would issue new debt via warrants, the company's stock price caught the attention of observers. Japanese news site IT media was quick to react and reported a 17% drop on Monday, mentioning stock dilution as the main reason.

NIS nippon ichi software stock warrant

Today's chart reveals that Nippon Ichi Software's stock kept falling on Tuesday, losing about 7% when the Tokyo Stock Exchange closed. The share is now worth 1215 yen, but here's the problem: the bottom exercise price of the warrants to be issued by NIS is 920 yen. If the share price drops under 920 yens, the warrant bears no intrinsic value. In such a case, anyone who acquires the warrant would lose money. 

Of course, that doesn't mean the stock price can't or won't recover later. IT media also confirmed that NIS had 2 billion yen in cash and equivalents on its balance sheet, dated March 30th. The severe drop in the stock exchange is a serious alert but again we have yet to see actual evidence that the company is in immediate danger.


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13 Comments

Ganoncrotch (on 22 May 2019)

Has to be said, that is one of the best article images on Vgchartz in years.


ryuzaki57 (on 22 May 2019)

Thank you. It was fun making it =)


  • +2
Ganoncrotch (on 22 May 2019)

can almost hear him saying.... DOOOOOOOOOOOOOOOOOOOOOOD!


  • 0
Bristow9091 (on 21 May 2019)

... Ouch! I really hope they manage to turn this around, I love the Disgaea games! :(


KLAMarine (on 21 May 2019)

Please pull through!


Ljink96 (on 21 May 2019)

They'll be fine........I think.


Moonhero (on 21 May 2019)

Looks like it's time to buy.


BlkPaladin (on 22 May 2019)

Yeah this would be time to buy, plus it will help the stocks recover when people start buying them.


  • 0
COKTOE (on 21 May 2019)

Yeah, this really sucks, and I hope they can get through this dark period. Been a big fan of their software beginning with Disgaea 3 on the PS3. I did a quick count, and have at least 25 games they developed and/or published in my current library, not including dupes where I bought some games on sale digitally to keep physical copies in brand new condition.


StriderKiwi (on 21 May 2019)

Figured as much. This isn't necessarily the end, provided this trend doesn't continue in the days that follow...


Chazore (on 21 May 2019)

This is rather bad.


KazumaKiryu (on 22 May 2019)

i want a complete new Disgaea for PS4.


Ganoncrotch (on 22 May 2019)

buy time!