alephnull on 16 December 2008
| NJ5 said: The analysts continue their pounding: Sony downgraded to Underperform at Credit Suisse . Credit Suisse downgrades SNE to Underperform from Neutral saying Sony has been slow to react to the current crisis, and they believe fundamental changes to its business structure are necessary, not only reducing headcount. Unless Sony shifts development costs to software and cuts capex in the electronics business to around 50% of the current level, moving to an "asset light" structure by using EMS more efficiently and rapidly establishes a platform as a top company in the content and hardware field, the firm believes the gap with Apple and Nintendo will widen further, leading to continued erosion of enterprise value.
(capex = capital expenditure)
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The analysts have been bouncing back and forth between neutral and sell the last few months. All I can say is that I bought 480 shares after Sony's PE dropped below 7 and have managed to lock in a respectable 10%, which outperformed the market. Although admittedly, I will probably profit take even if my sell triggers aren't hit in the next few days and I would have been better off with Nintendo (however it's overvalued and OTC so it won't work with my triggers).
Microsoft OTOH has been doing less well :)
