SNE, Sony update and a little Nikkei

Sony, that other tech. wunder child, might be a better bet at $10+. It could have completed the sequence and it comes from a much higher level. The drop is more than 92%.

sne aug 2012

This is from our Aug. 24, 2012 blog , in which we recommended HPQ but also as a by the way, mentioned Sony as possible a better bet. Today the stock is up another 11% in Yen terms;

sony march 15 2013sne march 15 2013 b

6758 is Sony on the or Tokyo exchange. The good news does not show yet on the ADRs as the day has not even started yet, but the stock should get to $17.50 easily. We would sell for a gain of $7.50 or 75% in a little over 1/2 year. The good news today was that Mr. Kuroda, the freshly appointed governor of the Bank of Japan was confirmed by the politicians. Apparently he is made of the same cloth as Bernanke but is more aggressively Keynesian, if that is even possible. The man has yet to take office. Interestingly the Japanese do not (yet) have a balance of payments problems, and are, once again the single largest holders of US treasury securities. So from that perspective they can afford to engage in the beggar-thy-neighbour policies as they have in the past half year or so.Interestingly they can do this without reproach from the Americans as, essentially they are doing the exact same thing as the Fed. is, and almost on the same scale. In terms of Central Bank independence though,just the pretence still remains. Rest assured that their popularity is diminishing rapidly from a rather low starting point in Asia but, no doubt, also in Germany and elsewhere.

As correct as we were on Sony, we were equally wrong on the Nikkei itself. We simple never expected Japan to drop the pretence of financial probity so easily and with so much gusto. Here is the Nikkei and the yen, The first is up 50% from the lows – 8000 to 12000 – and the second is down about 25% from  127 to 102. BOJ is making a bundle, soon more than 1/2 trillion $$ (at the expense of the natives)

nikkei march 15 2013.fxy march 15 2013