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Investment Potential of Sony Computer Corporation

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Investment Potential of Sony Computer Corporation
SONY 'S INVESTMENT POTENTIAL

Prepared by N.A.R.

Report Distributed November 17, 2006

Prepared for
English 302-B19-F06 ABSTRACT

This report explores Sony Computer Corporation, in an effort to provide detailed information regarding the company 's most recent stock trends. The purpose of this report is more specifically to show the performance of the company 's stock after a video game console release, in order to provide investors with information to help decide whether or not to invest. News articles and stock price history charts were consulted to provide a detailed picture of the company 's past and present state and to help make predictions for future performance. The stock charts and news articles referred to in this report are from the companies previous game console release in 2000 to the present. This report is intended to show how Sony 's advances in technology should give them a significant advantage over their competition in the near future. Recommendations are offered based on Sony 's chance for short and long term growth, compared to the amount of risk involved in investing. Sony Computer Corporation has been known for producing quality high tech electronics for years. Sony is aiming to continue this tradition with the release of its flagship, the PlayStation 3 (PS3). The PS3 is scheduled to hit stores in the U.S. November 17, 2006. This will be one of the company 's first products to include its new Blu-Ray DVD technology. With these this new product being released before the holiday season, now would seem to be prime time to invest in Sony stock (SNE). In January of 2000, after the release of the PS2 the stock skyrocketed to a price of above $150, up from prices between $30 and $50 a share earlier in the year. Sony is hoping for the same turnaround with the release of the PS3 and Blu-Ray DVDs.

Figure 1: Sony (SNE) price history since 1996. This year the stock is averaging around $40/share which looks almost



Cited: Arnold, Thomas K. "Fox puts rush on ‘X-Men ' for PS3 Blu-Ray." Nov 2, 2006. www.HollywoodReporter.com Kavilanz, Parija B. "First come, first serve for PS3, Wii buyers." Nov 8, 2006. www.CNNMoney.com Kuittinen, Tero. "How the Xbox got boxed out." Jun 22, 2006. www.MSNMoney.com. Nov 2, 2006. Leonard, Devin. "Sony needs a home run with the PS3." Oct. 31, 2006. www.CNNMoney.com Morris, Chris. "Sony outlines online plans for Playstation 3." Oct 20, 2006. www.CNNMoney.com MSN Money Staff Writers. "Sony: 9.6 million laptop batteries recalled." Oct 19, 2006. www.MSNMoney.com SNE Quote. "Sony Corporation." Nov 14, 2006. http://moneycentral.msn.com/. "Sony sold 88,400 PS3s in Japan in two days." Nov 13, 2006 Nov 14, 2006. www.playb3ond.com. Nov 2, 2006. www.Blu-Ray.com. Nov 2, 2006.

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