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Forums - Sony - Sony stock 24 year low. "No turnaround in sight".

Seece on 10 April 2012

Where exactly are they going to be making masses of profit? Gaming? Hardly, if Vita gets a price cut that hurts the situation, if it doesn't it's going to continue selling low and have a low holiday season. PS3 can't be making a lot either.

Televisions? Uh huh ...

I swear Life Insurance is their only saving grace right now (99% sure they're in that field)



 

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Millenium on 10 April 2012

I think Kaz may have been a little too optimistic with his expectation of such a profit next year.

I am going to buy some stock if I can though, just in case...



Squilliam on 10 April 2012
kowenicki said:
Squilliam said:

BAD OUTLOOK: Sony Corp. more than doubled its projected annual loss to 520 billion yen ($6.4 billion), which would be its worst loss ever.

THE REASON: A massive non-cash tax charge, which the company says stemmed from revaluing U.S. tax credits that are unlikely to be used because of its string of annual losses.

THE TRENDS: This would be the fourth year of losses for Sony. It has for years been struggling to regain the swagger and creative flair that made it a dominant force in the global electronics industry in the 1980s and early 1990s.

http://finance.yahoo.com/news/summary-box-sony-sees-worst-143435632.html

So not only are things looking bad for Sony. They also don't expect things to look up any time soon so are taking a one time hit to revalue their tax credits. To put it in perspective, a $6.4B loss is roughly 1/3rd their current market capitalisation.

I don't really see how things are going to look up for them. On the one hand they have rising competition from Korea, China etc and rising costs from the current high energy prices as Japan is a huge net energy importer as well as costs stemming from rising electricity prices due to the shut-down of the nuclear reactors in Japan. Without even factoring in the appreciating Yen they are in for a rough time.

and yet...

Kaz is expecting a V shaped return with profits of $2.2bn next year!!??

Well... What have they actually DONE lately which would even justify what amounts to a $5.8B profit turnaround? They make good hardware but their software sucks and they are falling behind in terms of investment. What will they do when Samsung and LG come out with OLED TVs at a reasonable price?

I bet had I got a Samsung LED TV the damn DLNA function would actually be working properly like it does on every other device in the house. Actually I got it replaced under warranty because my old Sony blew itself up. I like Sony, I typically buy Sony. However Sony just aint Sony like they used to be.



Tease.

Squilliam on 10 April 2012
kowenicki said:
Squilliam said:

Well... What have they actually DONE lately which would even justify what amounts to a $5.8B profit turnaround? They make good hardware but their software sucks and they are falling behind in terms of investment. What will they do when Samsung and LG come out with OLED TVs at a reasonable price?

I bet had I got a Samsung LED TV the damn DLNA function would actually be working properly like it does on every other device in the house. Actually I got it replaced under warranty because my old Sony blew itself up. I like Sony, I typically buy Sony. However Sony just aint Sony like they used to be.

to be fair it only needs a $3bn turnaround. much of this loss is a tax write down due to ridiculous previous year expectations. easy..?

I already excluded the one time writeoff. Maybe I could have excluded a little more because the text actually reads more than doubled, not doubled. Anyway Samsung their main competitor posted a quarterly profit of $5.1B.



Tease.

sales2099 on 10 April 2012

Good to know.



Xbox: Best hardware, Game Pass best value, best BC, more 1st party genres and multiplayer titles. 

 

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logic56 on 11 April 2012

lol at this thread



sperrico87 on 11 April 2012

People need to understand the difference between an annual loss and "going under". Sony has simply had four years of annual losses. They are still bringing in tons of money, it's just not been enough the last couple years to completely offset the costs of R&D and manufacturing, etc. They have plenty of money on-hand to do everything they need to do. Sony isn't going anywhere. Kaz Harai just needs to pull an "Iwata" and turn the losing divisions around by thinking outside the box and introducing disruptive technology.



 

Gilgamesh on 12 July 2012

Wait 24 year low? Back in May Sony was at a 30 year low, in two months they gained 6 years back! They'll be in the green in no time!



Mr Khan on 12 July 2012
kowenicki said:
and a new low today

12.39

Yen is through the roof against Euro especially. Nightmare for Japanese exporters. Sony predicted an exchange rate of 108 for yen/euro... its has been way below that ever since they predicted it and is now at 96.65...

Thats very very low. Expect some re-adjustment of expectations from Sony and Nintendo in next financials. Sony predicted a return to profit to the tune of $2.2bn by year end March 2013!?

One really has to wonder what the Japanese can do at this point. Hiking the sales tax might help a little, if it raises the amount of money Japanese folks need to spend to facilitate any sort of commerce, encourage spending but stall business domestically. Hmm...



Monster Hunter: pissing me off since 2010.

happydolphin on 12 July 2012
Mr Khan said:

One really has to wonder what the Japanese can do at this point. Hiking the sales tax might help a little, if it raises the amount of money Japanese folks need to spend to facilitate any sort of commerce, encourage spending but stall business domestically. Hmm...

Iwata mentioned in the last shareholder briefing that they are looking at ways to change the component purchasing currency and whatnot. Here's the exact quote:

Iwata:

The Japanese export industry is struggling with that difficulty today. We have been making efforts to decrease the impact of the yen’s appreciation by doing all kinds of things like changing the payments of production costs from Japanese yen to U.S. dollars (for the payment of procurement of components and labor costs). But we can’t do the same for the payment of costs denominated in Japanese yen, to be specific, the payment of parts made in Japan, costs to develop products in Japan and so forth.

Don't know if that explains anything but that's what I've got. That and a post by prof in a similar thread, but it was more a set of ideas rather than concrete plans of actions by a specific manufacturer.