Softbank Gets Hit Hard by Merrill Lynch Rating (SFTBF)

Jul. 7.06 | About: SoftBank Group (SFTBF)
Softbank Corp (OTCPK:SFTBF) and its shareholders received what everybody wants just before the weekend: coverage initiated with a "sell" rating and a fair-value share price estimate that's as much as 30% lower than the prior day's close. Merrill Lynch (MER) had as much to say in a report released on Friday that also questioned "Softbank's mobile phone business and about the synergies Softbank can expect from group firms such as Yahoo Japan Corp." (Source: Reuters)

Ordinary shares of Softbank (Tokyo: 9984) fell 10.68% to close at 2,300 yen ($19.97). Softbank is a popular stock among Japanese retail investors and even among institutional investors in the U.S. I have not seen a list of current holdings among Japan funds but historically Softbank has been a holding since it is also a component of the Nikkei 225 Stock Average and is a recognizable name out of Japan's IT sector.

Softbank Corp (OTCPK:SFTBF) 1-year chart: