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Forums - Sales - To People Who Think Sony is in Dire Straits

famousringo said:
Simply looking at stock prices to judge the health of a company is at least as narrow-minded as judging the health of a company on net profits.

I'll second this opinion, as well as that of NJ5 and others who are pointing out the blatantly obvious. Your method (and scope) of analysis is borderline meaningless; is there any surprise that your conclusion is flawed, and your reasoning is questioned?

 



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Wow, it actually brings a smile to my face and great satisfaction to know that so many well-informed posters disproved the complete lunacy of this thread.

Another point to mention...

Working in finance and accounting, I can tell you that balance sheets and income statements are far more important than stock prices, as others have mentioned, but many different factors are considered when assessing the financial stability of a company.

Stock prices and market cap generally represent the markets perceived value of a company (very very simple way to look at things).

You can't just post graphs if you can't fully comprehend the explicit and implicit information within the graphs.

Another thing to consider is...a corporation's sole legal responsibility to its shareholders is to maximize PROFITS not maximize stock prices/market cap. EVERY publicly traded company in the world exists for this reason...



I'm not a fanboy, I just try to tip the balance in favor of logic and common sense.

Recent trends don't mean very much without other information. Yes pretty much everybody took a hit and went down. The important part of the picture missing is that Sony stock had gone down before the recession until their total capitalization had already sunk to new lows. Nintendo stocks had split two for one for the two previous year which is pretty damn rare.