Deeds said:
bbsin said:
@ Deeds - I don't think you have an idea of how Sony makes money in the first place. I don't know how long you've been investing but I've been trading stocks for quite a while and believe me when I say this: Sony is not the only company in "debt" and still continue to run their business at a high level, ESPECIALLY in their industry. There is a reason why Sony has an enormous finance department (probably bigger than all of the electronics manufactures in the world), if Sony really wanted to get rid of all their debt (like America) they would. The only problem is that it's not on the top of their CFO's "to do" list, there are better ways to put money in their pocket's (unfortunately the majority of their pocket's are those pesky execs) given the large revenue Sony can create. Razor thin profits, debt, crap equity returns, are all too common in the industries that Sony participates, the majority of investors know this. If Sony were a micro corporation without a history and did not have many many different ways to generate returns then yes, Debt would handcuff them. But saying that Sony is actually in bad shape or handcuffed because of the 3 billion in debt (last time i checked) is pretty ignorant. Now this doesn't mean I'm saying that Sony is in a carefree great situation and every is dandy for them, but they sure as hell aren't handcuffed, espeicially given the point that they could get a financial backing from many sources.
With that said, you are right about one thing. Analyst are bias and do get paid for their reports, but assuming that Sony are the only ones that do this stuff is stupid. |
I'll just say this... Sony does not have a total debt of 3 billion dollars. It's significantly higher than that. |
......typically when you're evaluating a stock/company (as an investor) you go by Total cash - Total Debt. I'm not even going to check up on it right now but I assure you, the difference you'll get is around 3 billion. I really hope you weren't JUST looking at the debt (something that I've never seen anyone do before) and ignoring the total cash on Sony, because that would really hurt your credibility in terms of figuring out a company's balance sheet and "health". With that being said, with just the ratio alone, you'll know that it's certainly possible (like i said before) that Sony could pay off their debt IF they wanted to. Neither of this matters because like I've said before, a company like Sony could be in debt but none of it would matter since it's not the biggest conern for investors ATM. I wish analysing stocks and balance sheets were as easy as you seem to make it, then I wouldn't of had to go through all the growing pains (and loses) as an investor during all those early years.
I bet you must be wrapping your head around how Sony could be in so much debt (by ignoring the total cash) yet they continue to get bank support, investor support, institutional support and all this while the stock price hasn't fell of the table yet huh?
