SONY set to JUNK status

[joeorc]

kowenicki said:

joeorc said:
hell for all we know Sony may

Share Repurchase their stock after they pay back debts.

Pay back their debts?  How?  When?

Sony has always run high debt.  That why this announcement is such a big deal.

"Sony has always run high debt"

maybe that is exactly what is changing with Kaz at the helm

and Sony under a New Ceo is cutting 60% production of TV's and moving production over seas!

cutting 10,000 jobs rignt now, that does not include other cut's.

The fact they can always go smaller! means less operating expenses, which Kaz is already starting the cuts. selling off non profitable parts of their company, which Playstation part is profitable.

The point is the devalue of the stock means Sony can buy their stock back cheaper, and right now many people would sell, because they do not see Sony turning the company into the black for quite a long time. It works both way's a credit devalue can also benefit the company for the company may have faith in itself even if others do not. want to sell your stock, fair price above the market value!

after they sell off the production lines for TV's, downsize the work force by about 30,000 people lean an more trim Sony remember?

Kaz already stated the TV biz for their company has lost them 8 years straight! eight years worth of losses. and people think the Playstation part is going to end up taking the brunt of this restructure?

lets put it this Way, no matter how the credit rating goes, they were going to get hit massive loss on top of the recent losses in a downgrade, you don't think Sony expected this?

the fact that at the time:

Sony Corporation of America to manage its sales and operations here. Public trading on the Tokyo SE began December 1, 1958. The NYSE trade date (foreign corporation) began September 17, 1970.

many japanese did not want Sony to go public anyway, buying stock back could take them off public option if they so decided.!