Oh and as for the convertible bonds market. It's good for any company that's short on cash and can't get a loan the old fashioned way.
they did also raise 1.2 billion dollars by selling their US offices, I mean it's great to see them doing things to right their bank balance but at the same thing they have money in the bank now and a 3 years of rent to pay on those offices after which they could be faced with a fairly expensive relocation to deal with.
I guess it is just one of those things where investors are happy to see them take positive action and it's also a good time to buy into something when it's down so low.
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Nem said:
Sony is in alot of trouble, wich is why i am always surprised when they say they are relaxed and waiting for microsoft to make the first move. The PS4 will save or doom the company. I dont know why they dont cut-off the TV division at this point if its dragging everything else down. Theres no sense in keeping investing on it. |
The ps4 will save or doom the company...ok a division worth about 11% of Sony's overall revenue is going to curtail it...got it.
Sony's investment in Olympus is also a positive. I believe they bought a 10% stake in the company and Olympus shares are up 20% since that investment.
The stock is going up (+40% since November) in face of the dilution that the convertible bond offering has over the stock which is kinda funny.
The stock has been upgraded by two brokeage houses
Goldman Sachs from Sell to Neutral
Bank of America from Neutral to Buy
So yea positive catalysts all around. Even if Sony reports a bad quarter in about two weeks, the stock will still go up no matter what. The sell trade in the stock is over, sorry Sony haters.
| ganoncrotch said: they did also raise 1.2 billion dollars by selling their US offices, I mean it's great to see them doing things to right their bank balance but at the same thing they have money in the bank now and a 3 years of rent to pay on those offices after which they could be faced with a fairly expensive relocation to deal with. I guess it is just one of those things where investors are happy to see them take positive action and it's also a good time to buy into something when it's down so low. |
Sony has to make more drastic moves than they did. I still think they should sell some of their businesses and use that cash for more profitable ventures though.
And please don't forget that is is not so much a Sony, but a Yen-thing. The Yen weakened quite a bit, allowing Sony to have better margins. Here is a comparison between Sony and Nikkei. Their movement was not that much different.
Imagine not having GamePass on your console...
NYANKS said:
Good news! Hey, I just edited with another article more about Sony and the convertible bonds, can you evaluate that if you can? Sorry lol I'll put it here too: http://www.bloomberg.com/news/2013-01-24/sony-27-convertibles-jump-revives-market-in-slump.html
Sony posted in November a net loss of 15.5 billion yen for the three months ended Sept. 30, its seventh straight quarterly loss. The Tokyo-based company, which has 256 billion yen of debt maturing by December, kept its forecasts to report the first annual profit in five years. “Investors have done very well in deals such as Sony’s,” Barclays’ Smith said. “Getting rewarded like that for taking risk only whets their appetite for more of such deals.” |
Basically Sony seems less risky now that things are starting to turn their rate, making their bonds seem more attractive, increasing demand, and therefore increasing price.
kowenicki said:
next time you bad mouth, have a basis. |
Where was the badmouthing? 95% of the time theres a significant change for MS or Sony then its you who makes a thread on it.
Please stop being over-defensive. Its a worrying trait of yours recently.
Akvod said:
Basically Sony seems less risky now that things are starting to turn their rate, making their bonds seem more attractive, increasing demand, and therefore increasing price. |
Correct
Sony's credit default swaps (which is the cost to insure your money against a Sony default) fell to 250 (which is still quite high for a company that large) from 400 a couple months ago, the lower your CDS is the safer the investment. Bloomberg had a article about it a couple weeks ago. As reference, Toyota CDS is at 44, which means its very safe to invest in, safer than most bonds.
Yup, some people are first to scream about the bad Sony press, but you only hear a small peep when something positive happens, or they just try to down play it all together. SOME people that is.
I was walking down along the street and I heard this voice saying, "Good evening, Mr. Dowd." Well, I turned around and here was this big six-foot rabbit leaning up against a lamp-post. Well, I thought nothing of that because when you've lived in a town as long as I've lived in this one, you get used to the fact that everybody knows your name.
Carl2291 said:
Where was the badmouthing? 95% of the time theres a significant change for MS or Sony then its you who makes a thread on it. Please stop being over-defensive. Its a worrying trait of yours recently. |
to be fair here mate you did directly call him out by name for a response that would call for a defensive reaction by anyone. Also someone calling him a muppet and referring to the ms fans on the site as a "tiny group" and sicophants, defensive is very acceptable if you read through this thread :D
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