Troops on the ground, war escalating, currency wars in full fog, and the markets keep chugging right along. Steady as she goes til she stops, I guess. I’m looking to scale into some of my long positions that I’m still slowly building. The bulls are scared while the bears are dead. I’ve been saying that the path of least resistance for the markets has been sideways for a few weeks now. Still is sideways with a slight upward bias now.
Sony cut its dividend and warns about the smartphone business. As I wrote last week when I initiated a my buying on SNE, “They’ve failed as smartphone vendors in the long lost joint venture with Ericsson and ever since.”
As I wrote on Monday, “I am however still scaling into some Sony, making it a mid-sized position for now.”
I am not terribly surprised about Sony’s warnings today and frankly they give us the chance to start making this bet even lower than we would have otherwise. I’m not about to say that we’re going to get a 100X return on our money with this SNE common stock like I did with my AAPL common stock from the time I first started buying Apple, but I do recall that AAPL took a 5-10% hit right after I started buying it back at about $1 per share in 2003. The stock was pre-split at $14 a share and it dipped to $13 or so before starting its long, long ascent higher and marking its final bottom right there at $13 or so. I think Sony’s pullback today gives me the chance to finish making this a mid-sized position at a lower price than I otherwise would have.