Mike Tyson’s Punch-Out NES (IPO & Trading Update)

Welcome to the latest issue of Trading Updates / Video Games Insider – FREE VERSION

Today I’m going to look into an asset that is currently at two different fractional sites – Mike Tyson’s Punch-Out for the NES.

  • A copy is opening for trading at Rally Road on Friday, July 2nd from 9:30 AM – 4 PM EST
  • A copy is open for pre-sale at Otis for VIP members, but an IPO has not yet been scheduled

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What is the Asset?

These are both sealed copies of Mike Tyson’s Punch-Out for the NES that was originally released in 1987. There are several variations of this game, and as always, the earlier, rarer variations are more valuable. The earliest copies have white bullet points on the cover art rather than orange:

white on left, orange on right

The next differentiator is whether there is a Rev-A printed next to the seal of quality (SOQ) – the earlier copies don’t have it printed.

no rev-a on left, rev-a on right

Finally, look to whether the SOQ is round or oval – the earlier versions have round SOQs:

Round SOQ on the left, Oval on the right
  • The Rally Road copy is graded 9.4 A+ with a Rev-A, Round SOQ and Orange Bullets – it’s the 3rd earliest version.
  • The Otis copy is also graded 9.4 A+ with No Rev-A, Round SOQ and Orange Bullets – it’s the 2nd earliest version

The Rally Road copy was originally purchased for $80,000 in November 2020. It was featured on Pawn Stars, where the seller was looking for $100,000 and seems to have settled for $80K from Rally. Otis purchased their copy for $130,000.

If you are new to Video Games, go read about the WATA scale. The grade is the main driver of a video game’s value and understanding its meaning is crucial. The first number represents the condition of the item (in this case, the unopened box) on a 10-point scale, with increments of .5 until 9, and then increments of .2 until 10, though in practice they don’t give out 10s.

The second part of the grade is the seal grade – the condition of the factory seal. This scale goes from C to A++.

What is the current status of the Asset?

The Rally Road copy originally IPO’d in December 2020 with 10,000 shares at $9 each for a total valuation of $90,000. It fell sharply in the last trading window on April 20th and is currently priced at $6/share ($60,000 market cap). The Otis copy is IPOing with 13,680 shares at $10/each for a total valuation of $136,800. It is not yet open to the public and has not been scheduled, but VIP members have early access right now. There is a 100 share ($1,000) minimum purchase.

Category Strength

The Video Game Cartridges category posted a 59% ROI in Q1 2021.

Inferred Valuation / Target Share Price

[Detailed Valuation for Insiders Only]

Past Asset Growth

[Insiders Only]

Growth Outlook and Future Catalysts

There are two copies – one mid-production and one late hammering at Heritage next week. The mid-production is a 8.0 A. If it goes for $40K or so, then the value has stayed flat. The late production is a 9.2 A+ – if it goes for $35-40K or so, then the value has stayed flat.

Final Thoughts / Verdict

[Full Evaluation for Insiders only]

Check the clearing price and your bids before 4 PM so you don’t miss out when it clears.

Disclaimer: Depending on the clearing price, I may purchase shares in the Rally Road asset.

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Author

Adam Katz

Adam Katz

Adam is a lawyer and real estate investor with a finance background. His diverse job experience includes stints in a MLB front office, a major global law firm and the real estate investment fund he co-founded. He is bringing his well-honed research and valuation skills to the world of fractional investing. Born and raised in San Francisco, he currently lives in Brooklyn with his dog, a pit bull mix named Beaux.

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