marc said:
I didnt say they would go bankrupt but right now they are in deep trouble. This is well known and if they cant turn things around they will need to shave about 30k workers just to break even. They need something big and they need it soon. As you can clearly see, SNE has been underperforming its sector for a very long time. I use 10 years because its a common metric. I was not trying to pick on Sony specifically. The point isnt that sony lost 40% its that they have been consistently underperforming for more than 11 years now even during their greatest peak. Want to know why? I worked for them and I know for a fact that their management is horrible and they dont give a crap about their workers. The hardest workers get abused and the laziest workers get promoted because they are buddy buddy with high management. I know its true for most companies but its also true that companies that allow this behavior to fester become stagnant and eventually fail. GM is a great example and they did indeed go bankrupt. That is exactly how it was during my time as an engineer at Sony. I left as soon as I got an offer from Lockheed... they were almost just as bad but at least they paid very well and they gave me a ton of freedom and didnt work me to the bone. Sony paid peanuts but they had a much nicer breakroom and great coffee, but I guess they needed it because they liked us all to work 10-12 hours without OT pay. They actually fired people who wouldnt work free overtime and they got sued for it and then they changed all their workers to salary or contracted them out to temp agencies. They remain a filthy company. 2009 was an abnormality in the market. The only reason SNE seems to perform well is because they lost more than every one else. This is actually a very bad sign. The volitility means the market has less faith in sony than in the other companies. But you know what? I will play your game. If you bought stocks in 2009 here is your results: To put salt in the wound, Sony actually performed worse than the entire Dow and Nasdaq indicies... that is pathetic. Want to cry even more? I compared Sony to the Nasdaq as far back as my brokers records can go. They have actually underperformed the Nasdaq since 1978 by about 900%! Nintendo has actually beat the Nasdaq by about 90% since 1999(I dont have more data on them unfortunatly but I assume they were doing great back in the late 80s and early 90's). MSFT of course has, of course, out performed the index by nearly 27,000% but thats MS.
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Sounds like you're just bitter cuz you didn't get promoted or something and other people did. How is comparing Sony to MSFT and Nintedo as a whole a measure of under performing it's "sector"? Gaming division is a small portion of the company, it's also a small portion of MSFT. MSFT makes most of their revenue from computer Software, someting Sony doesn't even compete with. Sony makes most of it's money in industries that MSFT doesn't even compete in and even makes products that compliment MSFT's main stream of revenue. Now let's compare MSFT to Google and Apple (it's two main competitors) and see how well MSFT stacks up against them? That would leave the conclusion that MSFT is the worst company ever because it doesn't compare to having the ROI that buying those two stocks would have had at some point in the last 10 years.
So congratulations you have pointed out that Nintendo and MSFT have had a much higher stock price growth rate than Sony has over the past 20 or 30 years. But Sony's been kicking out a dividend since 83 annually and since 88 quarterly. Nintendo's only been paying a dividend since about 2002 and hasn't paid one since 2006. What does that say? Of course Nintendo's stock price is gonna keep climbing if it keeps holding on to all of it's money. That's what MSFT did too for a long time. It holds on to most of it's money instead of paying it as a dividend. You can't just compare the price indexes of each company. You have to take all those dividends from the 80's and 90's and turn them into today's dollar value. You can't just take a 10 cent dividend in 88 and slap an extra 10 cents on today's stock price and say "that's its value!"
