Saturday, March 9, 2013
Sharp jp Update "Fiscal End of Year Fast Approaching"
Recently I've read a few articles from the likes of a few industry pundits and both have downplayed the Sharp debt crisis. I know that both of these industry pundits have a financial connection with Sharp, so instead of trying to make sense of those articles I'll read as many stories as I can from news sources that don't have any skin in the game.
Even though some of the reports from Sharp have been better as of late. The recent money from Samsung and Qualcomm which total 230 million dollars is chump change when compared to the $2.1 billion convertible bond that is due in September of 2013.
In 45 days or so we should have a better handle as where the
Sharp financials are. I'm expecting some improvement, however Sharp has already mortgaged most of it's properties and needs to sell it's offshore assets in order to maintain the September 2013 deadline.
With Terri Gau of Hon Hai now backing off on the March 25th deadline that was to inject 708 million into Sharp and a 9.9% stake. This leaves a mere 6 months for Sharp to turn things around.
From what I've read in the past is that the only way Hon Hai will invest with Sharp is that they will also acquire a seat on the board of Sharp. Chinese and Japanese is not a good cultural mix and this has been the thorn in the side for this deal since Sharp started to free fall in the fall of 2012.
Another story from Reuters this week had this paragraph; "The banks that bailed out Sharp in September with $3.9 billion in emergency loans, including Mizuho Financial Group Inc (8411.T) and Mitsubishi UFJ Financial Group Inc (8306.T), are not including a Hon Hai investment in a business plan they are hammering out for Japan's leading LCD panel maker, sources told Reuters last month".
According to this statement both Mitsubishi and Mizuho have a hand in the future business plan of Sharp. This point was argued on the print4pay hotel forums threads for Sharp, many print4pay hotel members believed that Sharp Executives are not in complete control of their business plan and have stated that the banks will dictate the future of Sharp.
April of this year should hold some valuable news about Sharp.