Thursday, September 25, 2014

Recent Sell (SNE) Sony

Cape May, New Jersey
  • As I mentioned to a fellow reader. Sony was my first stock pick back in January when I had no idea about how the stock market works. I actually picked it up because I thought the PS4 would be enough to make the stock go up, but later I realized that was not the case. I am much wiser now and I read that SONY has now cut it's dividend due to it's struggle with the mobile phone business. So I could sell and put my money to work somewhere else or hold and see if they will make a comeback. It's just very disappointing that they cut their dividend since going public in 1958. 

  • I thought it made sense to me back in January. I didn’t know other things could affect the stock price such as currency, wars, and earnings reports. I remember Sony dipping over 20% at one point. Even now I think the stock is down 15% since I have owned it.
  • I have held on to Sony for a couple of reasons. Number one being I think the company had a ton of innovation left in them and they are currently winning the console war against Microsoft. Secondly, every Sony product I have ever owned is made with the greatest of quality. Thirdly, I haven’t lost any money because I haven’t sold the stock.
  • Well I had some hope until they announced the dividend cut. I have no choice but to finally sell and invest my money elsewhere.
Sell 45 Shares for $793


Would you sell Sony after the dividend cut or would you hold and wait to see if Sony will turn things around? Selling would mean a $160 loss, but you could reinvest the remaining $793 into another dividend paying company.


  1. Sometimes, even when companies make great products lose money...consumer electronics are a good example of that. Even MSFT used to lose money on every single console they sold for the last generation (xbox 360). Im not sure if tahts still true to this day with xbox one.
    A lot of people also thought that AMD would be a big winner considering that their chipsets were going into these consoles - but AMD has struggled for a while now and has had questions raised about its survivability.

    The correction should provide with some opportunities to deploy new cash now.

    Best wishes

  2. It's a good idea that you pull the plug on Sony.

    1. Tawcan,
      Yes I held them for long enough. The only thing they had going for them was the fact that they paid over half a century in dividends. And now they don't even have that going for them.

  3. R2R,
    You have made some really solid points and I could'nt agree with you more. I had the intentions of holding onto Sony because I felt they could make a come back. After a dividend cut, I felt that the money could be used on a better investment. I would rather see that money divided across multiple dividend paying companies. The added bonus is that if I use Loyal3 I will get the cash back rewards on that newly reinvested money. And since the market is falling it is a wonderful time to buy. lol.

  4. The odd thing about SNE is that most of their "profits", if there are any, comes from their insurance business. So SNE isn't really a tech company per say, so anything that's tech related won't have much upside on their earnings for a while.

    1. Henry,
      I don't see them doing will the next few quarters, but I think cutting the dividend will certainly help. I feel like I can make better use of the money I had invested in them. For example if I put that money into brk.b, I am sure I would make out way better in a year from now. I am not sure what I will be investing in yet but I will keep everyone posted. Thanks for stopping by!

  5. You've made the right choice as they really struggle bigtime. Unfortunately their high quality is no longer an advantage is this economy. I own several Sony products and they've lasted me for 20+ years.
    I would really be upset to see them go down all the way over the next decade.

    1. FRD,
      I agree with you 100%. I would also hate to see them go down because I feel like they have great products. They are taking risks when trying to get into the mobile business. I know the PS4 is doing great but I don't know if that will have an impact on their bottom line in the next few quarters. We will have to see what happens. Thanks for your input.

  6. Hi DM,

    I wrote a comment to your site on Sep 23 regarding Sony, and by Sep 25 you have sold it. You need to develop a better process for monitoring your portfolio.

    Good luck!

    Dividend Growth Investor