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: May 17

Stocks in this article: SPPI SNE DELL WMT

4. Phony Sony

What on earth happened to Dan Loeb? Did alien invaders swoop down and body-snatch the hedge fund manager?

Seriously, just when Sony (SNE) shareholders need his Godzilla act the most, Loeb starts bowing his way through Tokyo boardrooms like a goodie goodie!

Loeb, who demonstrated the power to demolish a CEO with the stroke of his pen last year at Yahoo! (YHOO), set his sights on struggling Sony this week. Loeb wants to restructure the once-iconic Japanese conglomerate by spinning off 15% to 20% of its entertainment division in an IPO, which he would then backstop with $1.5 billion to $2 billion of Third Point's money. Loeb reportedly owns 64 million Sony shares, or approximately 6.5% of the company. Shares of Sony popped 10% Tuesday on Loeb's play to unlock value at the PlayStation-maker.

"So while Third Point supports your agenda for change, we also believe that to succeed, Sony must focus," Loeb told Sony CEO Kazuo Hirai in an overly polite letter published in Tuesday's New York Times. Loeb also travelled to Tokyo this week to exchange pleasantries with Japanese officials and Sony executives.

Good lord, Loeb! Talk about namby pamby! That's not the Dan Loeb who strikes fear into the hearts of CEOs with padded resumes, or the one who gave his nemesis Bill Ackman an Herbalife (HLF) wedgie for the spite of it.

Somebody, anybody please bring back the fire-breathing hedge fund manager that corporate boards used to know and loathe! This fake Dan Loeb is killing us with his charm offensive!

More than that, it's also not doing him any good with the brass at Sony, who rejected his overtures with typical Japanese courteousness.

"As President and CEO Kazuo Hirai has said repeatedly, the entertainment businesses are important contributors to Sony's growth and are not for sale," Sony said. "We look forward to continuing constructive dialogue with our shareholders as we pursue our strategy."

Look, Dan. As you pointed out in your sickeningly sweet letter, Prime Minister Shinzo Abe is turning Japan upside down. While many others have failed, Abe has been able to smash the yen into submission and he intends to keep smashing. Moribund Japanese companies are finally getting competitive again and their stocks are flying.

So if it's a brand new day in the land of the rising sun, why not take your usual take-no-prisoners approach and apply it to Sony? Forget all that stuff you heard about Japanese corporate civility. They don't need any more civility. They need hostility, and nobody does that better than you.

Sony has never been able to enjoy the synergies from owning both electronics and entertainment, so it's a perfect candidate to be broken up. And you are just the corporate monster to stomp up and down until it cracks into two profitable parts.

Or at least you were before some imposter stole your identity.

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 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

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