Mon 15 Jan 2007
Canon buy out of SED Inc negatively affects share price.
Posted by SED TV Guy under SED TVComments Off
Info from Yahoo Asia News
Canon‘s share price has dropped 0.9% following the announcement that they would buy out Toshiba Corp.’s stake in their joint venture to produce surface-conduction electron-emitter display (SED) televisions and make the new type of ultra-thin flat-panel TV on its own.
Credit Suisse reported that Canon’s move poses greater risk and raises concerns for the company’s earnings for the business year to December 2008 and onwards, while maintaining its “neutral” rating on the stock and target price of 6,500 yen.
The two companies said last March they would launch SED TVs in the last quarter of 2007, delaying the launch by more than a year to improve cost competitiveness in a market known for steep price erosion, which has cast a shadow over the product’s commercial feasibility.
Not a huge drop, but not a vote of confidence either.
Technorati Tags: Canon, Toshiba, surface-conduction electron-emitter display, SED, SED TV
