Loading up on Sony again
I went long Sony options at $42.50 and was pleasantly surprised with the results after a move to $52 per share. Now that Sony stock has cooled off, a buying opportunity is showing itself yet again. Sony is still moderately priced at $42 per share and there is plenty of reason to love this stock for the next six months.
Sony posted huge PS3 sales gains
PS3 sales rose to 405,000 units in June, that’s twice as much last month and there is no weakness in sight. After a much waited release of the popular game Metal Gear Solid 4, gamers lined up to buy the console and will surely be buyers of many other games and bluray discs. The release and sales numbers were certainly helped by a much needed bump from the economic stimulus package.
Laptop season is getting closer
College laptop buying sprees are coming and Sony is again well placed to take advantage of a short but profitable season. Between laptops and gaming products, Sony has a great line to tap the money that is in collegiate purchases. Another boost to the bottomline for the quarterly results.
It’s cheap
Sony sells at just 12.5 times earnings. That’s pretty cheap for a company that is posting very nice sales figures on its gaming console and has a complete grasp on the growing bluray market. Though Blu Ray accounted for just 3% of disc sales in 2007, estimates predict a 10% rate in 2008. This kind of growth in high definition video is exactly what Sony shareholders want to see. With even more PS3s on the market after the June boom, the Blu Ray revenues should only grow.
Sony is again well positioned and ready for a bump.
