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Forums - Sony Discussion - Sony to sell $1.9bn of conv bonds, stock down 10% in early trading.

NYANKS on 26 January 2013
Akvod said:
NYANKS said:

Hey can someone break this down for me.  Does this mean anything to Sony? It was written yesterday.    

http://money.cnn.com/2013/01/25/investing/japan-yen-nikkei/index.html

Japan has denied that it is deliberately trying to weaken the yen, saying the recent depreciation is part of a normal market correction.

Related: Japan spurs talk of currency war

But the nation's exporters, including major automakers Toyota (TM) and Honda (HMC), stand to benefit from a weaker yen, which makes Japanese goods more competitive on the global market.

Meanwhile, investors have been piling into Japanese stocks since December, when Abe returned to power, promising to lift the economy out of recession.

Abe quickly unveiled a $117 billion fiscal stimulus package, including increased spending on public works, disaster recovery and aid to smaller businesses.

The combination of fiscal stimulus and central bank easing has attracted the attention of investors around the world, said said Michelle Gibley, director of international research at Schwab.

"Japan is really the story in 2013," said Gibley. "The motto this year could be 'don't fight the BoJ.'"


More favorable exchange rate effects for Sony. So dollars (or whatever) made abroad means more Yen for Sony. Also, investors believe that the Japanese economy with grow more with the stimulus, although I'm not sure how much of that is contributing to the stock price increase.

Overall, very good news from Japan. They're finally being aggresive with their fiscal and monetary policy, unlike the rest of the world.

Good news! Hey, I just edited with another article more about Sony and the convertible bonds, can you evaluate that if you can? Sorry lol

I'll put it here too:   http://www.bloomberg.com/news/2013-01-24/sony-27-convertibles-jump-revives-market-in-slump.html

 

Sony posted in November a net loss of 15.5 billion yen for the three months ended Sept. 30, its seventh straight quarterly loss. The Tokyo-based company, which has 256 billion yen of debt maturing by December, kept its forecasts to report the first annual profit in five years.

“Investors have done very well in deals such as Sony’s,” Barclays’ Smith said. “Getting rewarded like that for taking risk only whets their appetite for more of such deals.”



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Soleron on 26 January 2013
NYANKS said:

...

Good news! Hey, I just edited with another article more about Sony and the convertible bonds, can you evaluate that if you can? Sorry lol

I'll put it here too:   http://www.bloomberg.com/news/2013-01-24/sony-27-convertibles-jump-revives-market-in-slump.html

Weird article. Written in a positive tone... for the convertible bond market. is that good for Sony or bad?



NYANKS on 26 January 2013
Soleron said:
NYANKS said:

...

Good news! Hey, I just edited with another article more about Sony and the convertible bonds, can you evaluate that if you can? Sorry lol

I'll put it here too:   http://www.bloomberg.com/news/2013-01-24/sony-27-convertibles-jump-revives-market-in-slump.html

Weird article. Written in a positive tone... for the convertible bond market. is that good for Sony or bad?

It sounds like people were saying they're not the best option, but if investors are more willing to deal with them, I guess Sony changed the outlook on the convertible bond market? Sounds like it was a decent move, and it sounds like the Prime Minister and the BoJ are behind them and other major exporters.



vic_viper on 26 January 2013

What? No sign of that Microsoft muppet, Kowenicki and his tiny band of yes-men and sicophants? Shocking.

moderated Kasz216



NYANKS on 26 January 2013
vic_viper said:
What? No sign of that Microsoft muppet, Kowenicki and his tiny band of yes-men and sicophants? Shocking.

Lol, I'm a Sony fan, so just trying to show some of the recent good news for Sony and Japan in an otherwise depressing thread.  I'm sure they'll be back haha



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JinxRake on 26 January 2013
tonymarraffa said:
I hope they turn this around. Not since Sega with the Dreamcast has a company done so many right things in gaming and get so little back.


So many people desperately want to see Sony fail for God knows what slights, that it's incredible to just watch in action.



NYANKS on 26 January 2013

Some other good news:

http://www.reuters.com/article/2013/01/25/us-sony-batteries-nissan-idUSBRE90O01820130125?type=companyNews Moneyz for Sony!


http://www.reuters.com/article/2013/01/24/us-netflix-sony-idUSBRE90N00720130124?type=companyNews

Other possible moneyz for Sony? ^



Nem on 26 January 2013
kowenicki said:

Sony raising $1.9bn.

So:

$749 million to invest in an expansion in CMOS
$624 million to repay debt used to buy into Olympus
$125 million to repay debt used to help buy Gaikai
$375 million to repay the maturity of some other bonds maturing next year (a future debt)

So of the 1.9bn they are raising here, $1.1bn is simply to repay other debt. This is what happens when credit rating agencies lower your rating. So to all those saying rating agencies don't matter.... here is your answer.  I didnt realise they had borrowd to buy into Olympus and Gaikai, I'll read the accounts better next time.


Probably only those not living in europe didnt know that already. Rating agencies cutting your rating = you enter a negativity spiral. In europe's case, countries wont dissolve, but companies do.

Sony is in alot of trouble, wich is why i am always surprised when they say they are relaxed and waiting for microsoft to make the first move. The PS4 will save or doom the company. I dont know why they dont cut-off the TV division at this point if its dragging everything else down. Theres no sense in keeping investing on it.



Kasz216 on 26 January 2013
NYANKS said:

Hey can someone break this down for me.  Does this mean anything to Sony? It was written yesterday.   


That's actually why Sony's stock has been up.  Japan's weakening of the Yen.

 

Experts are divided as for whether or not it will help long term... since there is no real playbook to counter your money being worth too much.

 

To put it another way, Japan is currently going to engage in experimental economic procedures made famous by the United States... the problem for Japan is... everybody expected the Dollar to massivly weaken due to the federal reserves actions.... and it really hasn't.  The Yen, while lower now... actually ROSE vs the dollar when this news was released.

 

Additionally it sounds like they're wading a toe in...

http://www.nytimes.com/2013/01/23/business/global/japanese-central-bank-in-forceful-move-to-fight-deflation.html?_r=0

Probably because they're afraid of when their population gets too old, and there isn't anybody locally willing to dump money into their debt.



JinxRake on 26 January 2013
JinxRake said:
tonymarraffa said:
I hope they turn this around. Not since Sega with the Dreamcast has a company done so many right things in gaming and get so little back.


So many people desperately want to see Sony fail for God knows what slights, that it's incredible to just watch in action.


Well...I'm a right idiot. Been busy reading the whole thing that I responded to a post from 3 months ago. Ignore me.