- Abenomics Crushes Sony: Electronics Giant Forced To Cancel Dividend For First Time Ever (ZeroHedge, Sep 17, 2014):
It was over a year ago, when contrary to the propganda spewed on a daily basis by the Japanese government hell bent on destroying the domestic economy, now suffering its Keynesian death rattle, just to push stocks to highs which nobody except for a few thousand people will be able to monetize on, that the CEO of Sony explicitly warned that “the preconception is that a weaker Yen is good overall. Unfortunately for us, versus the USD, it goes the other way… we are actually at a disadvantage.” He wasn’t kidding and just under a year later, back in May, Sony shocked everyone when the electonics giant not only posted a massive net loss of $1.3 billion, far worse than previously expected, but also slashed its profit outlook by 70%.
Fast forward to today, when minutes ago the Yen hit another multi-year low against the dollar, which sure enough, is great for the nominal value of Japanese stocks, if horrible for the actual Japanese companies, the Japanese middle class, and pretty much everyone except for a few superrich people. Such as Sony. Because the (now former) electronic giant, which once upon a time was the target of an activist campaign by none other than Dan Loeb who mysteriouly saw value in the company, once again stunned everyone when it reported overnight that it expects its annual loss to swell to $2 billion, but, far worse, canceled the payment of its dividend for the first time ever after writing down the value of its troubled smartphone business.
Needless to say, Sony’s stock which doubled in 2013 for the completely wrong reasons, is now crashing. Continue reading »
Tags: Economy, Global News, Government, Japan, Politics, Sony, Stock Market