For only $10, this is quite an impressive pocket radio. I've purchased many small radios over the years, and this one is by far one of the most sensitive ones I own.
Reception on both AM and FM is terrific, with great selectivity. It easily tunes into adjacent stations which come in very clear, almost as good as on a larger radio. There is an LED on the front to show when a station is tuned in, and the FM antenna can be extended and moved from side to side to get better reception. AM tunes up to about 1630 or so, rather than all the way up to 1710, but this probably won't be a big deal for most people, since there usually aren't many stations on that high end of the band. The carry strap is convenient, and the radio is very small and lightweight so it can easily fit just about anywhere. Sound quality is good also- it's actually a little fuller than other small radios, and has decent clarity without being tinny. I do have one complaint, however- in strong FM areas the local stations tend to come in all over the dial, allowing for very little reception of the weaker ones. Unfortunately this is a problem where I live, and because of that I only use this radio once a year when I go on vacation to the beach. It does an amazing job there since there are no strong stations in that area, and it's disappointing that I can only get good reception there and not where I live.
Overall I would highly recommend this Sony radio. I also own Panasonic's current model, the RF-P50, and while it also has a Sony IC chip it isn't quite as sensitive as the Sony version. If you live in a weak area, definitely consider picking up one of these Sony radios. You won't be disappointed.