Welcome to the latest issue of Trading Updates / Video Games Insider – FREE VERSION
Today is a deep dive into Donkey Kong 3 – NES that will be trading on Rally Road on Wednesday July 7th, 2021.
What is the Asset?
This is a sealed copy of the 1986 NES game Donkey Kong 3 graded 9.2 A+ by WATA. It is an midproduction version known as the “2 Code” variant with a hangtab. There are several variations but only a few sealed copies of this version are known to exist.
Donkey Kong 3 was the third game in the Donkey Kong series, and notably, it did not feature Mario and was not a particularly memorable game nor was it a critical or commercial success.
Rally purchased this copy for $38,400 in January.
What is the current status of the Asset?
This originally IPO’d on March 2nd with 4,350 shares at $10 each for a total valuation of $43,500. It took six days to fund initially. It opens for trading on Wednesday July 7th from 9:30 AM – 4 PM EST. This will be its first trading window.
Inferred Valuation / Target Share Price
[Detailed Valuation for Insiders Only]
Past Asset Growth
Growth Outlook and Future Catalysts
While I am bullish on the video game market, Donkey Kong 3 just isn’t a top tier item. It took nearly a week to fund initially at a time when Rally’s assets were funding quickly. There’s no reason other than scarcity that it would pop in value — it’s just not a popular game with much nostalgic value.
Final Thoughts / Verdict
[Full Evaluation for Insiders only]
A fair number of assets at Rally have fallen sharply in their first trading window before either getting bought out or rising in the next one – though not in the video game category. Given the length of time it took to fund, we could see people dumping shares.