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Friday, June 27, 2008

Sony Corporation's share falls by 4% after announcing its business strategy

After Sony Corporation’s chairman, Howard Stringer, announced the company’s new strategy, Sony Corporation observed a 4% fall in its share prices.

On June 26 2008, at a press conference in Japan, chairman Howard Stringer said that Sony Corporation (TYO:6758) is going to increase the number of online products and target the emerging markets for its seven types of business. However, investors are not sharing Stringer’s optimism. Looking at the unfavorable economic conditions, they are losing interest. Reuters reports:

Sony said on Thursday it aimed to double revenues from the fast-growing markets of Brazil, Russia, India and China to 2 trillion yen ($18.7 billion) and invest 1.8 trillion yen in key businesses and technologies as part of a three-year strategy.

"Sony's shares are not being sold because investors thought the mid-term business plans were negative. The plans are not bad," said Soichiro Monji, chief strategist in the equity management department at Daiwa SB Investments.

Interestingly, at the flat market on Thursday Sony’s stock gained 2.8% but in the morning session in today’s stock market, share prices of Sony Corporation dipped 4% at 4860 yen.

Related article:

Reuters

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