Big companies lock into an exchange rate and therefore do not see these changes until some time down the line.
It's also not like their bank balance ticks up automatically and a lot of their expenditures are in Japan. IT will be good news in the long term if the trend continues.
Too bad I get paid in Yen :(
@vf
I'm confused. how coild they be locked in at a rate and then lose money on a downward trend but yet not make more money on an upward trend?
sounds like good news for JP companies
well, for example,
last quarters financilas showed a qoq exchange rate change from usd 76.9 to 78.6 and a eur 108.7 to 98.4.
given that change, they provided us the numbers had there been no change, and with change.
in imaging: 2.6 b yen loss.
in game: 3.6b loss
in mobile: 1.9b loss
inhome entertainment : 4.2 b loss
in devices: 3.5b loss
totaling up to 15.8b yen loss due to currency changes, or 140m euros.
That's just the change from quarter to quarter.
according to their financials, the forex costed 16% of total revenue.
currently , the eurjoy is at 112 and the usdjpy is at 84.
Over the last quarter, the dollar has gained about 8% and the euro has gained about 14%.
Over the q1 numbers, it gained 8 with the dollar and 4 on the euro. financial impact should be very low, but will still be an issue.
ie; this quarter should be about 150m better than last quarter.
| theprof00 said: @kowen see, i agree and understand that, but it feels like they are making a lot of good moves lately. They are focusing more on content, cut tons of staff, are using currently held properties tk make new technologies instead of inventing new products, have taken pay cuts, are moving away from the low margin products, and areshifting production areas to currently global-oriented smart areas, like brazil for instance. I mean, just as of the last quarters theyve been cutting a lot of waste and all thats been keeping them back, at least according to them, is this incredibly week exchange rate. |
They aren't really doing nearly as much as you'd think... as can be shown by the general doom and gloom still written about them (and other japanese electronics firms) from about every financial news outlet there is.
The markets are heavily skeptical...
really the BoJ is right though. Japan's main problem is fiscal.
I'm not sure many investors do a whole bunch of research on what a company is doing. More likely they just look at the raw numbers and opportunity for growth....which they would be right about here, as they are currently downsizing. But I believe opportunity is looming.
gorex contracted slightly yesterday from what id attribute to as cold feet.
trading is up another 1% today, but could see another contraction in about 4-5 hours when the afternoon traders get started.
Analyst are always behind the curve when analyzing companies. Look at Citigroup and apple for example. Most analyst during September quarter was raising their guidance and stock price for apple to the 800s, 900s and $1000 per share on the perception that the iphone 5 will destroy everything in its path like all other iphones have. Fast forward 3 months, most are scrambling to lower guidance because Apple has had many footfalls since its iPhone 5 release.
The same came be said for Sony, Sharp and Panasonic. If they are continuing on paths to cost cut and reform their businesses then that's how their turnarounds can take hold. couple that with favorable exchange and favorable government policies, its the catalyst they need to get moving.
| theprof00 said: I'm not sure many investors do a whole bunch of research on what a company is doing. More likely they just look at the raw numbers and opportunity for growth....which they would be right about here, as they are currently downsizing. But I believe opportunity is looming. |
Many investors? No. The ones that move the markets?
You bet they do. Outside which... those were specific investors who specifically study japanese electronics firms.
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