Sony Seen as Reject as Japan JPX Index Cuts Losing Stocks

[joeorc]

sales2099 said:
It is kinda funny that Sony's most profitable ventures now are life insurance and real estate.

But ya, this would suck. Guess we have to wait until January to see.

Wait until January?

You do not have to wait, Sony is going to be dropped, unless there is a real upswing which i doubt very much Sony's stock will be taking a further Hit again.

The Stock holder's know this very well already Kaz already stated as much. This is just the rating Agency's catching up to lower the stock further , which they were going to do anyway, this was already known well before the 3rd Quarter results.

An well you also have to remember that , its less overhead! for insurance and real Estate vs physical hardware production components and work force requirements not just that but power requirement's and Resources. Software and Admin. Services like Insurance and real estate  are way lower in opperation cost's. Example in case of TV production expenses of that much production vs what korea can get for a wage by wage process is much cheaper than the costs in japan that are needed, and that much more problematic for anyone to really to compete with the likes of samsung and LG on not just the low cost entry point but for also higher end units also. In Korea and china the production is way more cost effective than in japan on wage requirements alone for not only in component cost builds but also production and wage earning's low cost working cost's vs Much need Higher cost working cost's.

think about how much market erosion that has taken on japanese companies , and not just Sony! pretty much many electronic manuf. Companies out of japan, none just the size of Sony! it takes quite a bit to turn that around since Sony has in its employ over 130,000+ people, and many are japanese! Cutting out parts of your company is costly and time consuming if you want to make sure the  employed workers you are trying to save as many jobs as you can for those that work for yor company in japan.

IE: Samsung can under cut every freaking japanese electronic company in cost's for production of electronics and they do just that!

That's Exactly why Sony is cutting most of the Electronic sections off for selling off Assets, but as for the Entertainment Arm No because 

A) its already a LLC which mean's its already a subsidiary that its stock is not a IPO along with the entertainment Arm

And B) Kaz already stated what the three Core Pillars are (Mobile/Software ,services,Entertainment/cmos)

Tv's are no longer a core Pillar over at Sony, thus you have to have a Real Estate Company to set up to offer Those production plants for sale, some of which has been held by Sony for over 22 + years, when you can sell a single building for over 1 billion you best be darn tootin there will be offer's for such Physical Assets. the benefits is Down sized more smaller leaner company, increased market cap after lower over head cost's pay back debt, and narrow the companies focus.

the Bad: Lower income stream, also the Loss of Job's unless you can divest with job retention by new holding company, the cost's involved are expensive, so already Sony has spent more in restructuring cost's for no short term benefits, but long term should net a +