I don't like beating a dead horse, however, the news just keeps getting worse and worse for poor Sharp Corporation.
Recently I posted up these threads on the forums:
Sharp posts big loss on smartphone downturn
Japan Display says wouldn't turn down a partnership with Sharp
Neither of these are good, but the most damming of recent threads is this one, Sharp bond risk jumps as losses over 4½ years top $10 billion.
Here's a few bullet points from that thread
- “The problem with Sharp is it doesn’t have a core business with which it can look to the future,” said Mana Nakazora, the chief credit analyst in Tokyo at BNP Paribas SA. “All it can do is shrink its operations further.”
So what happens with research & development?
- "The chances of banks calling the 103-year-old company’s loans are therefore low", seems to me like there are more cuts to come, more business units to sell.
Business units to sell? Good golly, who would want to buy a business unit that's not turning a profit? Does that mean every business unit has the for sale sign on it, even the profitable imaging business unit?
- Sharp had a ¥510 billion syndicated loan due for payment in March 2016 and if lenders were not to refinance it, the manufacturer’s funding avenues would probably be cut off, they wrote.
That's 4.1 Billion US Dollars! Which leads me to a recent survey we posted on this site, Will Sharp Make $4.1 Billion Debt Payment for March 2016?
If Sharp does can't make the payment, does this mean there will be another debt equity swap? Can there be another debt equity swap? If so, what happens to Sharp when the banks own more shares than the shareholders? Many questions, right?
I'm not an expert in finances, however, I smarter than the average bear when it comes to the copier industry, at least here in the US. Our industry needs to consolidate, the weak must not be allowed to survive.
I have no clue on the number of single source Sharp dealers in the US, however, I would tend to think that many dealers that carry Sharp are also carrying a second line. Thank goodness for that right, I mean if I were a single line Sharp dealer I would be shaking in my boots right about now.
One last bullet from that thread
- “Sharp, by right, needed to find its survival plan a lot earlier.”
If you find the time please cast your vote in our two surveys.
Will Sharp Make $4.1 Billion Debt Payment for March 2016?
Who Would Be a Viable Buyer for Sharp Corporations Imaging Business Unit?
-=Good Selling=-