The End of Toshiba?



POSTED BY Ed (10 mths ago)
It would be comic if the facts behind it weren’t so ugly.

Toshiba shares crashed 25% in early trading in Tokyo today, temporarily plunging straight through the Tokyo Stock Exchange’s daily downward limit of 20%, before being nurtured back above it. This episode forms part of Toshiba’s ongoing serial collapses and dead-cat bounces that would be comic, if the facts behind them weren’t so ugly.

In late December, Toshiba shares had plunged 42% in three days, hitting the 20% downward limit repeatedly and actually closing at that limit on the second day of the collapse. At the end, its shares traded for ¥253.

In their Lazarus-like manner, however, they keep bouncing after getting crushed. After the December massacre, they bounced 18% in six days, to 300 yen, only to get re-crushed, this time by 28% in six days, including today’s collapse, to ¥215. This daily chart shows the last three months of the dead-cat bounce and the collapse since the end of December:


Ed (10 mths ago)
Toshiba's Least Bad Option

Last March, Toshiba Corp. sold its medical business to offset deep losses. Two months later, the new CEO Satoshi Tsunakawa likened the disposal of the unit he once ran to the way a father feels when giving his daughter away in marriage: You know it's the right thing to do but that doesn't mean there won't be tears.The same goes for selling part of its prized memory-chipmaking business.

Reports Monday that Canon Inc., Tokyo Electron Ltd. and others are interested in a 20 percent stake that could fetch as much as 300 billion yen ($2.6 billion) sent shares in the beleaguered company up as much as 11 percent.

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