This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The 5 Dumbest Things on Wall Street This Week: April 13

Stocks in this article: HOGS SNE MOH NOK BBY

4. Sony's Memory Lapse

Sony's (SNE) massive earnings revision this week had us reminiscing about the days when the Walkman maker ruled the earth. Sadly, it also reminded us how far the Japanese giant has subsequently stumbled.

So as a tribute to the once-proud PlayStation maker, let's play a little 5 Dumbest memory game, shall we?

First, think back to February -- yep, we know it's a long, long time ago but please play along -- when our good buddies at Sony projected an annual loss of 220 billion yen, or $2.7 billion, mostly due to feeble TV sales and the flood in Thailand.

Next, while keeping those figures in mind, fast forward to this past Tuesday when Sony said its annual loss would actually be 520 billion yen ($6.4 billion), as a result of a massive tax charge.

Now compare the two numbers. Do you get a 300 billion yen difference in barely 2 months like we do?

Excellent! That wasn't so tough, was it? Simple math, and simple short-term stupidity. Nothing new for Sony.

The next question revolves around years, not months, of ineptitude, so it may be a little tougher on the old noggin. Here we go: In what year did Sony last turn a profit?

The answer is 2008, when it posted net income of 369.4 billion yen. Including this week's 520 billion yen loss, Sony has bled 919.3 billion yen in red ink over the past four years.

Alright, for the last one let's really stretch those brain cells and go back over a decade of dumbness at Sony.

After Tuesday's 9% sell-off, the company's market cap stood at $18.3 billion. How much was the company worth in 2002?

Check this out: In March 2002 Sony's market value stood at $42.4 billion, more than double its current level. And as you may or may not recall, that was down by two-thirds from its March 2000 peak of more than $125 billion. Meanwhile, Sony's rival Apple (AAPL) has seen its market value grow from $8.3 billion ten years ago to almost $600 billion this past week.

We wouldn't mention that last fact to Sony CEO Kazuo Hirai however.

We have a feeling he'd rather forget it.

2 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs