The Japanese electronics maker made an announcement that their Corp fell as much as 16.5 percentage today and on that note, it will be demoted to the Tokyo Stock Exchange second section dropping from the first.
According to the Tokyo bourse’s rules, first-section companies are transferred to the less prestigious second section after their net worth turns negative. Unfortunately, Sharp has found itself in this category. One can only wonder what next, with so many questions to be asked. Will the electronic company ever rise again?
Sharp, after struggling with slumping display prices and slower sales of client Apple Inc’s iPhones, agreed to sell a $3.5 billion stake to Taiwan’s Foxconn in April. Its operating loss ballooned to 162 billion yen ($1.55 billion) in the financial year ended March from the previous year’s 48.1 billion yen.
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As things keep going wrong for this very well known electronic maker, that has put on smiles on the faces of many around the world we are full of uncertainty that they might never recover from this pit hole.