Sony’s IPO may spring surprises!
Ask what the word ‘Sony’ means to a layman. Pat would come the reply, “Electronics... of course!” Right he is, and that has always been the promise from Sony Corp., a $48.2 billion electronics titan which took the world by surprise when it announced a phenomenal y-o-y growth of 105.88% in net profits for the first quarter of FY 2007-08 to touch an encouraging $573.5 million, despite rising costs and stiff competition. What makes it a spectacular turnaround is the fact that this comes on the back of an alarming $582.9 million in losses during just the previous quarter. And hoping to ride the high tide, Sony is gearing up to list its financial unit, Sony Financial Holdings on Tokyo Stock Exchange on October 11, 2007, in a hope to raise $3.03 billion in lieu of a 34.5% stake in it. Considering that the markets in Japan lack optimism at the moment (with the recent sub-prime hits coupled with ill-political developments), the question really is whether this strategy of Sony comes at a wrong time.
Koichi Ogawa, Chief Portfolio Manager, Daiwa SB Investments, while speaking to B&E said, “The second quarter of FY 2008 results would be a better indicator to predict the course of the market. At the moment, Sony Financials would not see much excitement around it.... Hence Sony could wait.” According to Merril Lynch, this arm of Sony will contribute to an estimated $509 million in operating profits during FY 2007-08 to the group. But with the recent downturn in the Japanese insurance industry, the entity faces challenging times. With plans to divert funds to revive its ailing games & electronics divisions, Sony seems to have decided against the wait, and perhaps rightly so. In its bid for a comeback, it has to take every opportunity that comes its way...
B&E research bureau: Surbhi Chawla
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
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Ask what the word ‘Sony’ means to a layman. Pat would come the reply, “Electronics... of course!” Right he is, and that has always been the promise from Sony Corp., a $48.2 billion electronics titan which took the world by surprise when it announced a phenomenal y-o-y growth of 105.88% in net profits for the first quarter of FY 2007-08 to touch an encouraging $573.5 million, despite rising costs and stiff competition. What makes it a spectacular turnaround is the fact that this comes on the back of an alarming $582.9 million in losses during just the previous quarter. And hoping to ride the high tide, Sony is gearing up to list its financial unit, Sony Financial Holdings on Tokyo Stock Exchange on October 11, 2007, in a hope to raise $3.03 billion in lieu of a 34.5% stake in it. Considering that the markets in Japan lack optimism at the moment (with the recent sub-prime hits coupled with ill-political developments), the question really is whether this strategy of Sony comes at a wrong time.Koichi Ogawa, Chief Portfolio Manager, Daiwa SB Investments, while speaking to B&E said, “The second quarter of FY 2008 results would be a better indicator to predict the course of the market. At the moment, Sony Financials would not see much excitement around it.... Hence Sony could wait.” According to Merril Lynch, this arm of Sony will contribute to an estimated $509 million in operating profits during FY 2007-08 to the group. But with the recent downturn in the Japanese insurance industry, the entity faces challenging times. With plans to divert funds to revive its ailing games & electronics divisions, Sony seems to have decided against the wait, and perhaps rightly so. In its bid for a comeback, it has to take every opportunity that comes its way...
B&E research bureau: Surbhi Chawla
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
ZEE BUSINESS BEST B SCHOOL SURVEY
IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
IIPM ranked No. 1 B-school in India- Zee Business Survey ...
» IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
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