SONY set to JUNK status

[yanamaster]

Woah. Some people need some finance classes ASAP it seems.

OT though, can't say that i'm suprised. by how fast and ugly the situation got. Companies don't get free passes for trying to get better. Kind of like Yoda said " do or do not, there is no try". Because, did the layoffs and changing the site of production do anything to improve the financial situation in the last quarter? No it didn't, it only inflated costs.

the layoffs are sponsored by Sony with some retirement schemes and whatnot while setting up shop oversees and closing down in the mainland also generates big costs.

Some crazy ideas are flowing from other forum users. Like "Sony will just sell off their assets and pay back their debt!".

Uh-huh, yeah of course they will. Who the hell would buy it anyway? I mean sure, Samsung could buy out Sony's tv division for instance but why would they do that now and overpay when they can get it for much cheaper in the future? these divisions are not liquid assets, you can't just sell them and get the money as if it was a snap of the fingers. And most definitely not for the price that Sony will want to sell for.

This is part of the junk status that Sony has brought upon itself. The company is viewed by the market as a risky and well on it way to bankruptcy. If i remember correctly, Sony's debt is worth more than their market cap right now. What does that mean? It means that Sony is technically bankrupt already.

two or three more quarters of losses of this magnitude and money lenders will be calling out for immediate loan repayments. sony gets enough of those and its curtains down for them.

Unbelievable that it has come to this but honestly it's been hanging in the air for over a year now.