Sony Shares Hurt by Merrill Lynch PS3 Warning

| About: Sony Corporation (SNE)
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News of Merrill Lynch's (MER) research report documenting an up to $900 manufacturing cost per unit and a potential 6-12 month delay for the release of Sony's (NYSE:SNE) much anticipated PlayStation 3 sent Sony's Tokyo Stock Exchange traded shares (ticker: 6758) tumbling 3.64% today. You can read about a summary of the report and implications for exposed companies and competitors by clicking here.

After reaching a 52-wk and multi-year high following its breakout Q3 (quarter ending December) earnings, Sony's shares peaked at an intra-day high of 6,040 yen on January 27th and a closing high of 5,850 yen on February 10th. As of today's market close its shares were down to 5,300 yen. Sony's ADRs were down 3.6% Friday to close at $46.01, off from its recent 52-wk high of $51.16. The 5,300 yen close when converted at Y118/US$1 equals $44.92. Is it safe to say Sony's ADRs are heading straight back to the $43.29 close just prior to its earnings release on January 25th?

SNE 1-yr chart: