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TheSpindler on 21 November 2014
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NewGuy said:
Sleepyprince said:

Some of you may not know me but I'm quite knowledgable in economic analysis. I'm a Playstation follower for some years now.

Yesterday I was just doing some work with charts and I saw Sony's situation and... Wow. Sony is in deep, deep trouble. That's not even a forsee, that's happening right now.

Let's just see : http://ycharts.com/companies/SNE

It's all quite complicate information but I'll translate some for you :

- Sony have no more cash. But really, they are even at loss with -64 million dollars. For a small comparison they had 4 BILLION past year. Just for comparison, Microsoft have 7000 billion in free cash, Apple 1000 billion, Google 4000 billion, Nintendo something like 3 Billion (not very reliable information on it)

- The value of the company has drop from 34 billion, to approx 24 billion in less than one year, wich could be translated as : Sony has less than one year and a half to get their shit up before someone buy them for less than 10 Billion. Shit just got real.

- Stock is 20 dollars. Wich is really, really LOW. Even in split times.

Never liked those doom thread, but Sony is in really, really deep shit right now. Sony is almost bankroute people.


Hmmm I think you're reading the whole thing wrong and your information is factually incorrect (MS, Apple, Google having 7 trillion, 1 trillion, 4 trillion in cash, for example).

- Sony has 3.93 billion in cash right now (http://finance.yahoo.com/q/ks?s=SNE+Key+Statistics)

- Market cap is one way to measure a company's value, but you shouldn't take that at face value. If Sony chooses to sell Sony Pictures, for example, I would guess that would net them about $20B alone. Regardless the market cap has gone up in recent months.

- You're talking about ADR as the stock is in JPY, regardless, the ADR was at $9/share about two years or so ago. It has actually rebounded. 

 

Not saying they are a healthy company right now, they aren't. However, they aren't on the bottom of the pit

I always felt Sony could have a market cap at least as big as samsung (~20B vs ~140B), if they weren't so mismanaged. Kaz has plans, but needs to implement them and implement them quickly.

Don't think the OP ever said they were at the bottom of the pit, jsut that they are in trouble, and from your post, it seems you are in agreement.  On the other hand though, out of MS, Nintendo, and Sony, and taken everything into consideration(company size, departments), they are technically at the bottom of that particular pit.