Sony Shares at “Bubble” Level?

Sounds like Sony Corp. President Nobuyuki Idei has been playing golf with Microsoft Corp. President Steven Ballmer.

In Tokyo early today, Idei told Reuters that Sony’s stock had reached “bubble” levels and that an “appropriate” price would be about one-third below Tuesday’s peak.

The comments immediately reminded some analysts of Ballmer’s criticism of U.S. technology stock valuations last September. He said at the time that prices had reached “absurd” levels. (That was 1,000 Nasdaq points ago.)

Sony shares have rocketed more than 300% over the last year, and closed in Tokyo at a record 30,700 yen on Tuesday. The price fell 10% to 27,700 yen on Wednesday, and was off another 7.2%, or 2,000 yen, to 25,700 at midday today, after Idei’s comments.

But the decline shouldn’t stop there, Idei said. He told Reuters: “When our earnings levels are considered, the appropriate price would be about 20,000 yen. Above that would be a bubble.”

Sony’s U.S.-trade shares fell $20 to $250 on Wednesday--and are poised to slide again today, tracking Tokyo.