Happy New Year, and welcome to the December issue of Condor Monthly!
Please continue below to view the "What's New at Condor Capital," "From the Portfolio Manager," and "Financial Planning Corner" segments in this month's issue.
What's New at Condor Capital
Please be sure to check out the “Condor in the News” section to our website. More specifically, under “Publications”, you will find another article featuring Condor Capital's Vice President of Client Services, Andrew Novick. The article, entitled "Get a Clue About Mutual Fund Fees", was featured on December 4th, 2007, in the Business Section of the Star Ledger of New Jersey. Please click on the link below or copy & paste the link into your favorite browser to view this article.
Condor Capital Management and I have been recognized as a Reuters 2008 Top Adviser. This honor was announced during Reuter's launch of AdvicePoint, their new online community connecting investors with financial advisers, this past November.
Reuters AdvicePoint Top Advisers were selected based on a variety of factors including growth of assets under management, average client net worth, and niche client focus. Please visit
http://www.www.reutersadvicepoint.com for more information.
From the Portfolio Manager
Nintendo Co., Ltd.
(NTDOY)
Nintendo, a manufacturer of video game consoles and related software, was added to Condor's Large Cap Growth strategy portfolios over the summer.
A Leader in a Dynamic Industry
Since the release of the Nintendo Entertainment System in 1985, Nintendo has been a pioneer in the video game industry. Although the mid-1990s saw the introduction of heightened competition and an increasingly difficult operating environment, Nintendo has leveraged its unparalleled experience and extensive breadth of resources to decisively reaffirm its industry-leading position.
A Strong Business 
With semi-annual earnings increasing by 95% in March and 144% in September, Nintendo has been producing outstanding financial results. Much of this success has been due to the firm’s highly innovative product line, which is headlined by the portable Nintendo DS and the revolutionary Wii gaming system. Since Nintendo possesses over twenty years of industry experience dedicated solely to the video game industry, this has provided the company with a largely vertical business model, which often eliminates the need for third-party game manufacturers. Furthermore, Nintendo’s revenue streams are highly diversified, as its sales are evenly distributed among the Americas, Europe, and Asia.
Robust Consumer Demand
The Wii’s revolutionary game-play, which requires participants to physically act out the majority of a game’s necessary actions, has sparked substantial consumer interest and has also noticeably differentiated the platform from its peers. Additionally, Nintendo’s focus on casual games and a group-oriented entertainment experience has further spurred demand and has allowed Nintendo to reach a broader consumer base. In fact, although this Christmas season fell one year after the Wii’s release, demand has remained so strong that retailers across the nation experienced extensive shortages. From November 2006 to November 2007, the Wii sold approximately 13 million units. This compares to around 4.2 million for Sony’s Playstation 3 and roughly 5.8 million for Microsoft’s Xbox 360, which are the Wii’s primary competitors.
Since the current gaming cycle is still relatively young and the industry itself is far from reaching maturity, our outlook for the future of the video game industry is optimistic. Going forward, we expect growth to remain strong, as global penetration increases and as the consumer base for the Wii, in particular, expands to include older as well as more female gamers. Given Nintendo’s revolutionary product line and unmatched experience in its field, we feel tha t shares of this company present a favorable long-term investment opportunity.
Financial Planning Corner
Automatic Enrollment in 401k Retirement Plans
The Pension Protection Act of 2006 made it easier for employers to automatically enroll employees in their 401k retirement plan. While there are a few reasons a company may elect to implement auto-enrollment, most do so because they genuinely want to help their workers save for retirement. With automatic enrollment, employees don’t have to do anything to begin saving toward their own retirement. Some employers were worried that their employees would not like the automatic enrollment, but a recent survey conducted by Harris Interactive Inc. on behalf of Retirement Made Simple, a coalition formed by Washington-based AARP, and The Retirement Security Project, indicates that 98% of automatically enrolled employees were happy that the company had offered the option.
Even though your employer offers automatic enrollment, it is suggested that you take an active interest in your 401k plan. For instance, a typical contribution rate through auto-enrollment is 3% of pay, but you should evaluate whether you can afford to contribute a higher amount. This may be especially attractive if your employer offers to contribute a match on top of your deferral rate. You should review the investment options in your employer's plan, whether your employer offers automatic enrollment or not. Many plans offer lifecycle, target date, or balanced funds that can be considered one-stop shopping for many employees. However, most plans offer a host of investment options, allowing for a more customized portfolio. Certainly, your participation in the 401k, your contribution rate, and your investment selections should be reviewed on an annual basis
Stat Bank- Interesting Statistics
