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nanarchy on 23 November 2011
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Xenostar said:
Fumanchu said:
http://www.msnbc.msn.com/id/43486360/ns/business-us_business/t/brands-wont-be-around/#.Ts0DR1bh-Sp

Not sure what kind of impact selling off both Sony Pictures and Sony Ericsson will have on stock value.


Well half of that prediction has already been proved wrong as Sony bought the rest of Ericsson, they didnt get rid of it. But lets face it why would should we think Financial Analysts are anymore accurate that the ones in the games industry. 

Games analysts rely on past experience and guess work as to what will be successful. Financial Analysts (at least the good ones) rely on past experience and the financial facts about a company. While they are certainly not always right, good analysts are many times more reliable and accurate than a games industry one. The financial facts with regards to Sony are currently very bad, Hopefully they will turn around but in the meantime they are a poor investment as you are better off finding something else to buy or just sticking your money in the bank for the short term and then buying when and if the turnaround starts.

With regards to investments you need to completely remove any personal attachment to the brand. The predictions all year for Sony for the majority of analysts has been run and run fast, with sony down significantly this year they have been proven right so far. There were people saying how dumb the analysts were saying to get out when sony were bouncing off the $24 support threshold, then again on the $20 threshold. Remove your emotional attachment to the brand and look at the numbers, if you think the high risk is worth it then go for it.