Here's a quote from the CEO of Sharp:
"I believe it is my responsibility to compile a new business plan as soon as possible," Sharp Chief Executive Officer Kozo Takahashi told reporters at a briefing in Tokyo on Tuesday. Sharp will present a new business plan around May, he said.
In 3 short months we'll know what's in and what's out with Sharp. I fully expect Sharp USA to fall on the sword and tell everyone that "we'll still be here no matter what"!!
To me the answer is simple, you can't get capital for a business unit that is losing money. You can however can much needed cash for a business unit that is pulling a profit like the copier/printer business unit.
Will the Japanese Banks lend more money to Sharp, sure they will, however you can bet dollars to doughnuts there will be many more covenants with those loans. Could one such covenant be the sale of profitable copier/print business unit?
Sharps losses are not due to re-structure, nor a stronger yen, it is because of falling sales and stiff competition. Sharp had posted that they would make a 30 billion profit for 2014, now they have downgraded to a 30 billion yen loss. Egads!!!, that's a swing of 60 billion yen.
With many of their properties mortgaged, and the recent sale of the US property. I find it hard to fathom if we'll ever see the same Sharp.
As Vince would say, "that's my two cents"
-=Good Selling=-
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