Company: Sony
Business: Sony is a technology company that have their toe everywhere. They make PCs, MP3-players heck they invented the Walkman, the own a large part of not only Hollywood but also of artists and the music they have made.
Active: They are active and sell their products all over the world.
P/E: -5.3
What we get out here is a negative P/E value due to the extreme losses. Extreme losses! And it is not only last year! It is by now several years without any stopping to it. I guess it has to do with that it is a Japanese company. You are not allowed to destroy or tear apart what your ancestors made. So they carry the losses without cutting as much as they probably need to do. The price to book is also not very good mainly based on that the book value is low. Book to debt is 20% that is bad, bad, bad. It almost look as if it is a bank with fractional reserve banking but trust me on that Sony is not. They have had a negative growth of 7.6 % in the last five years. Well, anyway feels boring to talk about this company because they look so unhealthy.
Conclusion: Do not buy Sony. They are in principle a good company with huge potential that currently are very cheap but I would keep my fingers away from this cookie jar. Maybe after seeing two to three quarters of increased earnings then it would be of interest to look into Sony again... but until then... just leave it.
No comments:
Post a Comment