This article was originally published by Seeking Alpha on June 29, 2014
By Sarfaraz A. Khan. Research Asst. Ali Ilahi
Sony has
forecast another massive loss in the current fiscal year. Sony’s American
depository receipts continue to under-perform. Its loss-making television unit
could report a rare profit, but its long-term outlook is uncertain.However,
long-term oriented investors might still want to stick around.
The Japanese
technology behemoth Sony (SNE) has forecast another massive loss of ¥50 billion
($489 million) for the current fiscal year ending March 2015, a second annual
loss in a row following last year's ¥128.4 billion ($1.25 billion). As a
result, over the last three months, the company's American depository receipts
have dropped by more than 8%, closing at $16.76 on Friday.
Over the last
52-weeks, Sony has fallen by more than 20%.
Unlike its
rival Panasonic (OTCPK:PCRFY), which has successfully turned itself around by
focusing on the business customers, Sony is still in a mess. This, however,
does not mean that inventors should give up on Sony, especially since the light
at the end of this tunnel is already in sight.
Television
Programming
This,
however, hasn't stopped Sony from making acquisitions that could push its
margins higher. On Thursday, Sony announced that it is buying U.K.'s CSC Media
Group and its 16 channels for $180 million. Through this acquisition, Sony will
significantly grow its portfolio of channels to 25 as it increases its focus
towards the lucrative television programming industry, as opposed to movies.
While Sony
generates significantly higher revenues from movies than the television
network, it reported a 5.4% drop in revenues from … read full article at
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