Sony shares Plummeting to the Lowest Level in 32 years

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TOKYO, KOMPAS.com — Sony just offer conversion bonds (convertible bond) after nearly 10-year hiatus. However, finally, post-the offer is, Sony's stock plummeted even at the lowest level for 32 years.

As quoted Bloomberg, Sony shares dropped 11 percent to 772 yen Japan per share before rising back to 791 yen on trading Thursday (15/11/2012).

With the decline of the value of the stock, it also lowers the value of corporate valuations plummeted 44 percent (as of ytd) to 9.7 billion US dollars. Whereas valuation company Sony in 2000 and still 120 billion US dollars.

The maker of Bravia TVS offers conversion of bonds worth 150 billion yen raised 0 percent coupon with 5 years. The price offered is 957 yen per share, or 10 percent higher than the closing share price on the Tokyo Stock Exchange, Sony today. Funds from the results of the conversion of bonds to fund acquisitions and expand the facilities of the imaging sensor.

"There is a risk of dilution of equity from the amount of bonds on offer compared with a market capitalization of Sony," said Hideki Yasuda, analyst at Ace Securities Co. in Tokyo.

Hideki added, if investors consider the stock's potential to rise, shareholders and even thinks its stock is likely to rise it is something that is uncertain. This is the cause behind the decline in Sony's share price over the years.

Sony did a first conversion of bonds in 2003. While it's still Sony Walkman music player debuted with the sale of his grind in the television market.

Sony Chief Executive Officer Kazuo Hirai in the middle of a business slump at Sony years ago then do the employment (JOB CUTS) to about 10,000 employees and sell the assets of its business. Currently, Sony's only focus on car devices, gim, and digital imaging to be able to compete against Apple and Samsung.



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