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Sony Corporation Message Board

  • sanjay198690 sanjay198690 Feb 6, 2013 8:48 PM Flag

    Market is still adjusting to the new reality

    A world class brand , and on the way up .
    That is still not a reason to buy . But the currency theme is still not digested by the market.
    So let us do the numbers ,

    80Billion $ in sales . There were one time charges last year , so there was a loss .

    If you take out the one time charges assume 0$ profit last year . ( It will be slightly positive after taking away the one time charges ) .

    But let us be pessimistic and say 0$ profit if they were to continue, this year without the currency changes .

    Now the currency has already depreciated about 20 percent .

    Sony is one brand where most of the design and manufacturing is in Japan . Not so for the car companies .

    so imagine a 20% reduction in cost on the currency basis . let us assume only 15% because some employees are overseas .

    That would be a profit of 6billion $ . So at a forward pe of 7 , which is extreme value .

    The stock would be valued at market capitilization of 42billion $ .

    That would put the stock around 42$ , as they have about 1billion outstanding stock . And at 16 the market capitalization is 16billion $.

    So a very conservative value for sony at this exchange rate is 42$. The market will soon react to this if the exchange rate is sustainable.

    would be interested to hear any other views .

    Sentiment: Strong Buy

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    • Thanks.
      Long for both SNE (Sony) and PC (Panasonic).

      Sentiment: Strong Buy

    • Well put...Your estimate does not even take to account the future upside sales potential including that of Sony's smartphones and tablets..And how about what they have to say in their "come see the future" presentation of Feb 20th...Sony already doing well in many areas including movies, etc but those most likely will also see upside moves...

      If things go as planned, which today's forecast seem to claim exactly that, then I truly believe Sony to end the year somewhere around 75 to 100 per share. Remember even today Sony has about 2/3 of Apple's revenues but a cap that is a fraction of aapl. Also recall CEO's claim a couple of weeks ago that he expects Sony to become one of the top 3 smartphone sellers in the world.

      Any wonder why Sony was upgraded by no less than 3 analysts just about a week BEFORE today's earnings?

      SNE is the best LONG value stock with lowest risk out there.

      Sentiment: Strong Buy

 
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