Sony looks ready to explode
After news that Toshiba would be conceding the format war to Sony, an investment in Sony looks overdue. For the last year, Toshiba and Sony have been battling it out to see which format, HD DVD or BluRay would win over the public and the new high definition format war. Toshiba is ready to give up, cut its losses on HDDVD and toss the win to Sony, which will now have 100% control over the next generation high definition format.
Sales of BluRay players and the Sony Playstation 3 are expected to rocket upward after news of Toshiba ending the format war. Consumers have been sitting on the sidelines, too afraid to buy a format that may go obsolete. Now that the decision is just about final, all of those people on the fence are likely to pick up a new BluRay player or Sony’s PS3 which is BluRay ready. Tax rebate checks in May will probably see their way into the new format, I wouldn’t be surprised if BluRay sales peak when the checks are mailed.
Sony is looking like a good investment even without the BluRay format. Sony trades at a PE ratio of 18 and a PEG of less than one, making this a good stock for the future. The stock also sits at a low, ready to bounce off its support level and back to the upper $60s. Right now, Sony trades at just $45 per share.
Sony has been trending upward for the last five years and now sits at the bottom of its trend. I expect a technical bounce further fueled by news of the end of the format war. Sony looks like a good buy at $45 per share, look for a gain of 33%+ as Sony moves back towards $60 per share.
February 21st, 2008 at 6:44 pm
Very nice observation. I’m little bit confused about Blue-ray disks and HDDVD. I think, that the price will fall under 42 and hit the bottom and then it will rise. This stock has a big potencial.
February 22nd, 2008 at 12:41 am
This stock has a lot of potential. There isn’t much room for confusion now, you only have one choice in high definition DVD and that’s BluRay.
I don’t know about waiting for a retouch of $42, the risk to reward of waiting isn’t great enough for me. I’ve bought in already, I’m afraid that Sony’s stock won’t go back to retouch the trend as word gets out its the leader in HD technology. Estimates say that less than 10 million BluRay units, PS3 included have been sold so far so there’s much room to grow.
March 17th, 2008 at 3:15 pm
I think, today is the best opportunity to buy SNE stocks. I’m going to buy them and add to my portfolio.