2-Star Stocks Poised to Plunge: Sony?

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electronics giant Sony (NYS: SNE) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Sony's business and see what CAPS investors are saying about the stock right now.

Sonyfacts

Headquarters (founded)Tokyo (1946)
Market Cap$13.5 billion
IndustryConsumer electronics
Trailing-12-Month Revenue$81.2 billion
ManagementCEO Kazuo Hirai
CFO Masaru Kato
Return on Equity (average, past 3 years)(14.6%)
Cash/Debt$19.8 million / $15.0 billion
Dividend Yield2.1%
CompetitorsKoninklijke Philips Electronics
Panasonic
SANYO Electric

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 29% of the 1,692 members who have rated Sony believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, Weequay2, succinctly summed up the bear case for our community:

They have not made a revolutionary product since the walkman, quality standards are horrible, and their last CEO was a complete joke. ...

1.) No interesting products.
When was the last time you caught yourself saying, "Wow that new Sony product is like nothing I've ever seen before!" ...

2.) Low Quality
Sony is great at making expensive products that fail because of some cheap (but essential) part. ... This is the main reason I'll never buy from them again.

3) Leadership. ...
The leadership is behind the times, they don't understand the culture of our new technology.

Sony has become a follower, I think it will continue to lose the respect of consumers.

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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool has sold shares of Sony short. The Motley Fool has a disclosure policy.
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