SNE (Sony Corporation) - Continuation #2

Here is what media says about Sony

"Sony Corporation (NYSE:SNE) reported its several operations and Sony Group sites and facilities are affected by the Pacific Coast of Tohoku Earthquake and tsunami, and the company is monitoring the status of each of these sites on an on-going basis, while also considering the most effective recovery measures. The company also responded to reports of widespread power outages by voluntarily suspending operations at several sites. The company is currently assessing the full impact of the earthquake, tsunami and related power outages on Sony’s businesses and consolidated financial results.

In addition to manufacturing sites, the company’s Sendai Technology Center (Tagajyo, Miyagi) ceased operation due to earthquake damage. While certain production sites in Japan have been moderately affected, there has been no report of employee injury or facility damage, and operations continue. The possible damage at other Sony Group companies in Japan is currently being reviewed. Also, Sony Chemical & Information Devices Corporation, Kanuma Plant (Tochigi Prefecture), Sony Energy Devices Corporation, Tochigi Plant (Tochigi Prefecture) and Sony Corporation Atsugi Technology Center (Atsugi, Kanagawa) temporarily suspended operations on a voluntary basis, to assist with the alleviation of widespread power outages."

The stock opened today 15% lower from its last week Thursday price, which means by now market capitalization is down by $5.2 billion. Earlier I assessed Sony damages at a maximum of $100 million, which really is an exaggerated figure, but to be on the safe side I assumed $100 million. The company lost on its market value by $5.2 billion!

Again, I will not suggest any stocks; I used Sony only as an example to see how markets react to certain events. From time to time stock markets offer good bargains due to a herd mentality of people; I use these opportunities for the benefit of my fund.

Happy investing....

Damian Kosutic