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Tuesday, October 26, 2010

Strong Arguments justifies the Rise in price of Sony shares

In recent years the vast expansion of information and communication technology has made a lot of money among some common interest groups. These enterprises are earning huge amount of money by selling their innovative products to the people. Although these companies have different business models and separate market shares but it seems that invasion has reached to a mark where anyone can buy anything. One news published today in The Reuters indicated that the price hike of the shares of Sony was a resemblance of a rumor that stated that the American technology giant Apple Inc is going to buy the Sony Corporation of Japan. But in the mean time one should not forget that the share price of Apple fell inevitably.

There are a number of strong arguments that justifies the rise in price of the Sony shares, but most importantly it is the report of Mr. Eric Savitz that suddenly poured the necessary fuel into the plot. In one of his blog posts Mr. Eric acknowledges “In the piece I noted that the company could do something aggressive, like bidding for Adobe, Sony or even Disney. But that was pure speculation. Yeesh”.  It is difficult to believe that only such a speculation is not enough to raise the share prices of a company like Sony. But if it happens then I must admit that Mr. Eric is definitely the next famous astrologer of this century.

On the other hand we must also admit that Apple Inc is such a terrific giant who is ready with their $51 billion cash and should have planned to expand their business. But what can it buy them? That is the burning question of the time.

However it is also confirmed that these technology giants are slowly reaching to their ultimate capacity. Now it can be a reason for these giants to think differently from the traditional. The future is for those who are capable of producing diverse solutions. Now one giant of today can’t strive for excellence in all the aspects of technological advancements. Rather what it can do is get itself tagged to another giant which has almost the similar type of visions, thus ensuring a new dimension in their business policy and also reducing their efforts in innovations of similar technologies.

Mr. Eric might be the one in identifying this new concept of industrialization of the CEO’s of these capital giants and Apple Inc is one of them with tons of cash in their hand. Who knows may be this is ultimately the next revolutionary business model of the next 10 years..........
source: reuters

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