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Sony Corporation (SNE)
SONY: 'End to negative factors', analyst
SONY: 'End to negative factors', analyst
Portfolio.com - November 25, 2007
Submitted by kspraydad (475) at 9:29PM PST on November 25, 2007
A robust start to the U.S. holiday shopping season, providing some reassurance about the health of the U.S. economy.
Sony was also boosted by a ratings upgrade by Mizuho Securities to "2" from "3."
In a note published on Thursday, Mizuho said an end to the negative factors afflicting Sony, including large losses on the PlayStation 3 game console, seems to be in sight.
http://www.mizuho-sc.com/en/index.html
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2Laoldar posted on Sony Corporation (SNE) at 9:57AM PST on November 26, 2007. RE: SONY: 'End to negative factors', analyst@kspraydad,
I just don't see how their analysis has anything to do with the PS3. Seems to be more related to the rest of their consumer electronics business. I know that they specifically mentioned it, but without elaborating, it feels like a passing reference.[ Oracle ] [ Level 21 ] [ Rank: 182 ]bids
2kspraydad posted on Sony Corporation (SNE) at 4:29AM PST on November 26, 2007. RE: SONY: 'End to negative factors', analyst@Laoldar,
On a micro basis SONY's price movement is a combination of China sniffing around the Japanese market, strong US sales results, a Dubai investment firm buying 5%+ of Sony shares.
To me that was the background buzz to the statement that this firm believes the PS3 is near the end to its 'negative factors'
On their site you just get a sound bite and need to have password access to get the full note:
We are increasing our earnings forecasts for Sony and raising our recommendation from 3 to 2. The shares are trading at a PER of 17.5x our revised FY3/08 and FY3/09 EPS forecasts, the lowest level since 1997, and we believe there is now a clear sense of undervaluation in the share price.[ Oracle ] [ Level 21 ] [ Rank: 475 ]bids
1ixaarii posted on Sony Corporation (SNE) at 12:42AM PST on November 26, 2007. RE: SONY: 'End to negative factors', analyst@Laoldar,
I'm thinking it may be true that Sony has managed to lower manufacturing costs... but I'm kinda expecting a new price drop in spring. Is that an unreasonable/impossible thing? It is very soon... but the price is still too high for them to build the install base they need to compete, and they may be pressed for install base by big studios like Square in order to justify exclusives...[ Oracle ] [ Level 20 ] [ Rank: 444 ]bids
1Laoldar posted on Sony Corporation (SNE) at 11:26PM PST on November 25, 2007. RE: SONY: 'End to negative factors', analyst@kspraydad,
This article is based around the idea that Chinese investors are buying up Japanese stocks...this could lead to over-pricing there as the Chinese stock market is widely considered to be in a bubble, so this could just be spill-over.
Too bad that there wasn't any reason given for why this analyst thinks that the PS3 will stop losing money. Without any analysis provided, I worry it's yet another analyst (who isn't familiar with this particular indsutry) misreading the videogame market.[ Oracle ] [ Level 21 ] [ Rank: 182 ]bids
10kspraydad posted on Sony Corporation (SNE) at 9:29PM PST on November 25, 2007. Article: SONY: 'End to negative factors', analystA robust start to the U.S. holiday shopping season, providing some reassurance about the health of the U.S. economy. Sony was also boosted by a ratings upgrade by Mizuho Securities to "2" from "3." In a note published on Thursday, Mizuho said an end to the negative factors afflicting Sony, including large losses on the PlayStation 3 game console, seems to be in sight. http://www.mizuho-sc.com/en/index.html[ Oracle ] [ Level 21 ] [ Rank: 475 ]
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The ratings change is for SONY as a whole I agree, however there must be some meat there (imo) if they specifically mentioned the PS3. Unfortunately I don't have access to the full investment notes.