Sony upgraded to "buy" by Jefferies

tiffac

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tiffac on 07 February 2014

-CraZed- said:

Blood_Tears said:
But but..why would anyone buy into a "junk status" company?

Buy low sell high? No where to go but up?

Sony has several very profitable divisions, one being their financials andinsurance division, and they just laid off 5,000 workers which should save them about $1 billion (which is about what their net losses were this fiscal year) so a return to profitability is likely after the restructuring.

I thought the 5k job cuts won't take effect until sometime between 2015 and 2016?

sales2099

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sales2099 on 07 February 2014

FlamingWeazel said:

sales2099 said:

Blood_Tears said:
But but..why would anyone buy into a "junk status" company?

You know the junk status depended on Sony keeping the TV and laptop business alive and continuing to loose money?

Cut off the limbs and go forward. Seems to be good so far.

?? It is smart to sell a stagnant non growth business like PC, it is nothing like cutting off your limbs to move forward. it is a smart a necessary move.

It was a division of Sony. Part of it. Like a limb. They are better off without it. The analogy holds.

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

-CraZed-

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-CraZed- on 07 February 2014

tiffac said:

-CraZed- said:

Blood_Tears said:
But but..why would anyone buy into a "junk status" company?

Buy low sell high? No where to go but up?

Sony has several very profitable divisions, one being their financials andinsurance division, and they just laid off 5,000 workers which should save them about $1 billion (which is about what their net losses were this fiscal year) so a return to profitability is likely after the restructuring.

I thought the 5k job cuts won't take effect until sometime between 2015 and 2016?

I didn't see a time table for that so you may be right. Link?

tiffac

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tiffac on 07 February 2014

-CraZed- said:

I didn't see a time table for that so you may be right. Link?

I can't believe I actually found the article. lol!

http://www.businessinsider.com/sony-warns-of-11-billion-loss-2014-2

"The job cuts, which will come in both TV and PC divisions, are to be implemented by March 2015. The cost savings are to kick in by the 2015-2016 financial year, Sony said."

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Dark_Feanor on 07 February 2014

Blood_Tears said:
But but..why would anyone buy into a "junk status" company?

Because there is no more place to go down.

Sony won´t get bankrup in the next 5 or 6 years, it will sold most of its assets and laid off many more employees, Wall Streat LOVES this.

You can make a lot of money beting on a moribund horse.

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-CraZed- on 07 February 2014

tiffac said:

-CraZed- said:

I didn't see a time table for that so you may be right. Link?

I can't believe I actually found the article. lol!

http://www.businessinsider.com/sony-warns-of-11-billion-loss-2014-2

"The job cuts, which will come in both TV and PC divisions, are to be implemented by March 2015. The cost savings are to kick in by the 2015-2016 financial year, Sony said."

Thanks. Still just the news of the cuts will help float stock prices above their current levels. And it does make sense as they will need those workers to help with the restructuring process. I'm guessing the layoffs will be drawn out over the next year to ease the impact.

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mibuokami on 07 February 2014

badgenome said:

Valkyria Chronicles 4 needs to exist!

Stop talking sense you bastard! We're talking about Sega here not Sony.

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theprof00 on 07 February 2014

sales2099 said:

FlamingWeazel said:

?? It is smart to sell a stagnant non growth business like PC, it is nothing like cutting off your limbs to move forward. it is a smart a necessary move.

It was a division of Sony. Part of it. Like a limb. They are better off without it. The analogy holds.

I agree. They got their leg caught in a bear trap, they cut it off.

But despite losing a leg, prosthetics work wonders nowadays.

FlamingWeazel

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FlamingWeazel on 07 February 2014

sales2099 said:

FlamingWeazel said:

sales2099 said:

Blood_Tears said:
But but..why would anyone buy into a "junk status" company?

You know the junk status depended on Sony keeping the TV and laptop business alive and continuing to loose money?

Cut off the limbs and go forward. Seems to be good so far.

?? It is smart to sell a stagnant non growth business like PC, it is nothing like cutting off your limbs to move forward. it is a smart a necessary move.

It was a division of Sony. Part of it. Like a limb. They are better off without it. The analogy holds.

No it's more akin to cutting off a wart.