Nintendo (NTDOY) is off to the races, up over 14% after news broke claiming Tencent (TCEHY) would be allowed to sell Nintendo's Switch console on their platform. We're initiating a position in NTDOY today and the thesis is simple: the market is pricing NTDOY as a stagnant, console-led gaming business with little growth and subject to boom and bust cycles. We believe the market isn't pricing in Nintendo's switch to a highly recurring revenue model and entrance into the smartphone market, which expands NTDOY's TAM over 100x. The business currently trades at half the multiple