Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, August 9, 2013

Article Excerpt

SONY CORP. ADRs, $20.15, New York symbol SNE, fell 7% this week after the company rejected a plan from Dan Loeb, an activist investor who owns about 7% of Sony’s shares. Loeb wants Sony to sell 15% to 20% of its entertainment division through an initial public offering. This business, which makes movies, television programs and music recordings, accounts for about 16% of Sony’s revenue. However, the company feels that owning entertainment content gives it an edge over other electronics makers. Moreover, Sony is making more movies and TV shows in partnership with other studios, which should cut the entertainment business’s costs and improve its profits. Meanwhile, Sony’s revenue fell 9.8% in three months ended June 30, 2013, to $17.3 billion from $19.2 billion a year earlier. That’s partly because the company sold its chemical operations in September 2012. Weak demand for cameras also hurt its revenue. The company earned $35 million, or $0.03 per ADR (each American depositary receipt represents one common…