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SK Telecom Co. Ltd. Message Board

  • cool7477 cool7477 Apr 27, 1998 6:16 PM Flag

    watch pkx.

    if you have money and do not care that the money can be locked for 1 or 2 months, buy pkx now.
    it is a real good opportunity. this stock can go up to 22 ~ 25 pretty soon. It is under book value. Also, with that money(the book value) you cannot puff a similar company. it would cost you time also.
    This is an era of Fe. The whole steel industry is not doing good. However, when the industry go up and the bad news about Korea disappear, pkx will surge up. I guess.

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    • I've been waiting until I learn something
      substantive.
      I really don't know when restrictions on SK
      Telcom
      foreign ownership will be further relaxed.
      As, for
      parity, I can only apply logic. In the absence
      of
      restrictions, informed investors will buy where the
      shares
      are cheapest (after adjusting for differing
      transaction costs in the different markets.) There
      may
      still be occasional manias which cause temorary
      disparities.
      (Possibly, the custodian banks act as arbitrageurs in
      these
      cases. Again I don't know, but this could be found out
      by
      calling.)
      Sorry, I can't tell you whether to cover now. I don't
      know.
      The biggest question mark in my mind for any Korean
      company
      is still the accuracy of the financial reports. I
      suspect (but I
      have no way of knowing) that some of
      SK's competitors are
      in even worse shape than SK.
      That said, it may be years before
      enough consumers
      in Korea have enough money to pay
      substantial
      phone bills to any company.

    • I am engaged in a disagreement with a friend as
      to whether the foreign investment limits on SKM
      local stock will be removed entirely, or will go only
      to 33% because SKM is one of the public entities
      often referred to in the news releases.

      Can
      anyone verify one way or the other, preferably with a
      link to an official announcement or a newspaper
      article.

      Thank you very much.

      Peter

    • Artif and all:

      Regardless of the relative
      merits and demerits of SK Telecom, is there any reason
      that the local, foreign and ADR prices for this
      company's shares will not reach close to parity soon after
      the restrictions on foreign investment are
      lifted?

      Thank for your thoughts, everyone.

      Peter

    • I apologize. I am an idiot. I know nothing,
      nothing, nothing
      about Korea. I hope you went ahead and
      shorted anyway
      despite my mealy-mouthed caveat.
      All
      I really understand is the principle: a share
      by
      any other name would smell as sweet.
      (Or as
      Gertrude Stein riffed: a share is a share is a
      share.
      This allows for generally profitable arbitrage. It
      says nothing about naked long or short
      positions.
      Mea Culpa.

    • Actually, I just covered a small naked short position yesterday
      at 7.25.
      I'm not sure when SK Telecom's ownership limits will be further
      relaxed. Also, the arb opportunity with the foreign tranche shares
      probably isn't all that compelling anymore, but I'm not sure what
      they trade at. Long-term I'm not sure that SK Telecom's prospects are all that bad, and I don't want to be nakedly short anything that has good long term prospects, even if the short-run looks horrendous.
      (I may be wrong, but I recall something about no further relaxation until December for SK Telecom. Also would the
      new shares be ADRs or foreign tranche? I don't know.)

    • US Dollar currency is once again running. The newly elected
      presidential party doesn't have the majority congress control,
      and goverment is forcing shutdown of financially weak companies.
      There is absolute halt is real-estate transactions. Korea is
      now bankrupting at a rate of 3000 companies a MONTH.

      The goverment forced closure of weak companies are JUST beginning
      and the worst of all is expected this summer and fall. HongKong
      financial news reports that fair value of the Korean currency
      won is around 1700 (vs. 1400 per 1 USD).

      Risk...Risk...Risk...

      Cool7477's "...when the (steel) industry go up and the bad news
      about Korea disappear..."

      This is like when Oxford Health Care (OXHP) settles their
      lawsuits and make their profit numbers, they will be back
      again in high numbers vs. ~$17 now.

      Japan is one of the major IMF bailout of Korea and now the CEO
      of Sony is talking about Japan going into a financial crisis
      of their own. That would be devastating to Korea's recovery.

      Besides, these Korean ADRs are overpriced in US. Buy'em cheaper
      directly from Korea.

      • 2 Replies to JangGoon
      • if you bought pkx yesterday, probably you are happy now.
        don't compare pkx to oxford. price of pkx won't go down 60,000 won, i guess.
        people keep saying buy in Korea. Some people can do easily, but some not. When you buy a stock, the control of it is one of the most important thing. do you think you can get the same control?
        "For me, even losing one minute of control cannot be accepted."
        Another small why there is premium, is in the liquidity. pkx is one fourth share of POSCO. when you split stocks, generally the liquidity goes up. Look at iomega, dell and all other craps.
        Again, see the crisis of Japan as an opportunity. Everything is an opportunity if you can see it beforehand.

      • I still haven't found a way to get share prices for foreign tranche
        shares of KEPCO and POSCO. Does anybody know what they
        are trading at? My impression is that the prices are perhaps
        12% below the ADRS now, but it could be as much as 20% or
        as little as 5%. So, now I'm trying to decide whether to
        take my profits and pay short term capital gains taxes, or else
        just close out the short position and hold on to the long.
        My big position is in Pohang. Does anybody have an informed opinion on its long term prospects? I believe its debt at the end of 1997
        was 8.1 trillion won, and only 61% of this was won-denominated.
        My first question concerns accounting standards. Pohang reported significant profits in previous years. Do you believe that
        they were real, or just accounting fictions enabled by ever increasing debt?
        Next question: Will the government ever shut down Hanbo (a bankrupt competitor)?

    • The Korean Won is stronger recently so this helps SKM but this makes harder for PKX to sell steel outside Korea,but I agree with you that PKX is a buy at this price 16 3/16 Exchange Rate US Dollar Korean Won 10.19PM 1.0 US= 1349.0 WON

 
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