Normchacho said:
Imaginedvl said:
Normchacho said:
didn't they just get upgraded? Stock is going up, PS4 is selling better than expected. The outlook is actually better than it has been in a number of years. People just see one number and think that's the whole story. |
I believe it is the opposite, you see their stock going up and you believe that's the whole story.
What about all the money they lost during the past few months/years and what about the next quarter? This one was bad even with the launch of the PS4, imagine the next one... The stock went up because they announced their intention of selling their PC division, not because of the PS4... And it is just another tentative from Sony to stop bleeding money; it is too early to say if things are going to be better.
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I'm afraid the shareholders and financial analysts are on my side here. Stocks are up despite the bad numbers because shareholder confidence is up and like I said they were just upgraded to "buy" status by Jefferies.
You're mistaking the $1.1 B loss for quarterly numbers. That numbers is the yearly forcast and it was changed to that due to the costs of getting rid of the PC division as well as restructuring the TV division. They posted a profit for Q3.
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Definetely good news despite the 1.1 Billion loss - in the longterm, they will be a much stronger company than they are now.
However, Sony has been extremely fortunate in the last years in regards to selling their assets to cover-up their failing units (2 HQ Buildings sold, DENA shares sold, Vaio sold, etc.) - Selling assets in order to recoup losses and ''patch'' things up for now is not a sound strategy.
I'm much more worried about their debt. They have much more debt than cash at hand, still losing money in the short term, borrowing costs are to be more expensive due to junk status, and so on. I'm not seeing the light at the end of the tunnel as of now.
