2-Star Stocks Poised to Plunge: Sony?
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 | $22.3 billion |
Industry | Consumer electronics |
Trailing-12-Month Revenue | $79.9 billion |
Management | Chairman/CEO Howard Stringer |
Return on Equity (average, past 3 years) | (5.9%) |
Cash/Debt | $17.5 billion / $13.5 billion |
Dividend Yield | 1.3% |
Competitors | Panasonic |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 28% of the 1,646 members who have rated Sony believe the stock will underperform the S&P 500 going forward.
Just last week, one of those bears, All-Star jwray01, listed several of Sony's negatives:
A dying has-been with consistently negative earnings (and falling). ...
Their business encompasses:
1. Dinosaurs of the music/movie industry that are likely to wither away over the next 20 years.
2. Some crappy games and consoles whose lunch will be eaten by Valve, [Activision] Blizzard, Nintendo, Microsoft, and Apple.
3. Commodity consumer electronics that can be made cheaper and better by others.
4. A huge random amalgamation of other crap that evidently isn't very profitable.
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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Microsoft, Activision Blizzard, and Apple. Motley Fool newsletter services have recommended buying shares of Microsoft, Activision Blizzard, and Apple. Motley Fool newsletter services have also recommended creating a synthetic long position in Activision Blizzard and a bull call spread position in both Microsoft and Apple. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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