#10 - Sharp, Inc (OTC:SHCAF)
Sharp, Inc.– Although not facing the cost pressures of other on this list, Sharp is a case where companies, and investors, are making decisions based on the unknown. That is, could the tariffs being volleyed back-and-forth escalate into something larger? That seems to be the impetus behind Sharp announcing that they were canceling a plan to issue approximately $1.8 billion of new shares. In a statement, the company announced that the degree of instability in the market due to the trade conflict between the United States and China would not allow the share sale to maximize the benefit to its stakeholders. Shares of Sharp rallied on the news, and the company said that it did not forecast the canceled sale to have a financial impact in the medium term. However, the company still has to deal with how they will raise capital. The share sale was being used as part of the company restructuring following its purchase of a majority stake in Taiwan’s Foxconn in 2016
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- Current Price
- 0.00
- Consensus Rating
- N/A
- Ratings Breakdown
- 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
Tariffs create winners and losers. For every sector and business that benefits, there are those that suffer. All the announcements coming out of Washington and foreign governments breeds uncertainty and if there's one thing investors hate it is uncertainty. The market is brutally indifferent to the why behind things. It’s a numbers game and for many of these companies, the numbers (for the moment) are stacked against them.
However, change is a constant. And while the final chapter on the tariffs has yet to be written, necessity is the mother of invention. Or in this case, perhaps, innovation. As an investor, you should pay attention to how the tariffs may fundamentally alter the business models of some iconic companies. How they respond may be the next big story.
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