note from Art: Just what we P4P'ers have been saying, read an agree or diagree.
Monday, August 27, 2012
Missing the Point With Sharp
There have been numerous commentators providing opinions as to Sharp’s future in the copier business. An article by Nikkei suggested that Kyocera was in discussions to buy Sharp’s copier business. Sharp US has stated that the article is not accurate and that Sharp is not currently in discussions to sell the copier division. Commentators have focused on the fact that the copier business is one of Sharp’s more profitable businesses. That is the correct focus but I think the commentators arrived at the wrong conclusion. Since the copier division is, evidently, one of Sharp’s most profitable it is also one of the most attractive to a buyer. Let’s be clear: I am not stating that Sharp will sell their copier division and or that if they did it would disruptive to the dealer community. I simply have a different opinion based on the fact that the copier division is profitable from those that have been published so far.
Let’s think about it this way. You own 10 ounces of gold and you believe the price of gold will rise significantly over the next year. Your gold is worth approximately $16,000 and you believe if you hold it for another year it will be worth $24,000. Unfortunately, due to an illness of a loved one that resulted in extraordinary medical bills, you’ve fallen behind on your mortgage and car payment, putting you $14,000 in arrears. Your mortgage holder is within days of foreclosing on your home and you have to park your car in a different location each night as the repo-man is stalking your home and work. If you didn’t have a house your kids would be in the street, possibly thrown out of their local school since you aren’t a resident, and you have no idea where you’d live. Without a car you couldn’t get to work. What do you do? You sell your gold and after paying the taxes you catch up on your mortgage and car payments, right? It would be irresponsible to be concerned with future gains when there is so much to lose in the present
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