“Much has been discussed about Apple’s (AAPL) cash hoard and how it can best be used,” Don Douglas writes for Minyanville. “This discussion often ends with the opinion that Apple should at least initiate a dividend or some other unexciting scenario.”

Nintendo “currently in a product transition period. After scoring a runaway hit with the DS and Wii, the company is currently searching for and working to develop its ‘next big thing,” Douglas writes. “I believe this has positioned the company in a time frame where a deal could be done. Nintendo’s market cap is currently around $17 billion and shrinking by the day. In a couple more trading sessions, the stock could be trading at book, which isn’t too far away. But the story gets better. The company is sitting on over $11.5 billion in cash and no debt to speak of.”

Douglas writes, “Apple would pick up some great intellectual property and potential protection around the world… [plus] just think about the game libraries, characters, and licensing that Apple would acquire. Apple could do one of two things with this: 1. It could swallow it whole and have a real game development arm or; 2. These characters could be easily licensed to any number of media studios creating an endless supply of royalties and a kick to Apple earnings for years to come.”

Read more in the full article here.