Aielyn said:
Actually, stocks are a strong indicator of a company's current status. Why? Because people buy stocks based on a company's current status and it's current direction. They invest if they think that it's going to have a strong season, and they sell their stocks if they think it's going to be weak. If a company makes a strong profit, people rush to buy the stocks. If a company loses a lot of money, people try to sell their stock as quickly as they can. In other words, stock price is a good barometer of company status because investors pay attention to that status and react accordingly. What it's not is a good barometer of where the company is actually going. This is because investors have only partial understanding of the market and the upcoming products. This is why Nintendo's stock only started going up after the hype built up, and why it has been declining recently despite the upcoming Wii U launch. It is indeed silly to suggest that low stocks means Sony is about to die... but it does indicate that Sony is in dire straits. They need a win, and they need it soon. |
that is theorically true... though some serious BS has been going on on the market since the mid 90's.... a lot of companies have been or are over stated or even under stated... largely due to more and more regular joe bidding from home with no other clue than trends... humongous idiocity published in magazine like forbes... easier acces like e-trade, scott trade etc and thinking the stoke market is a huge international las vegas casino.... the alpha of some companies are completely out of sync with their stock value....
now about sony id on't know enough about the jap culture/gov but they could theorreticaly "bail" them out or help them out to.... it is a big piece of the jap industry... that works with a lot of other partners... if they go down the jap electronic sector would be hurt more than just sony... I'm a big anti sony guy... but i don't wish them to desappear.... competition is good for all of us customers..
