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.
I've been waiting until I learn something
I really don't know when restrictions on SK
foreign ownership will be further relaxed.
parity, I can only apply logic. In the absence
restrictions, informed investors will buy where the
are cheapest (after adjusting for differing
transaction costs in the different markets.) There
still be occasional manias which cause temorary
(Possibly, the custodian banks act as arbitrageurs in
cases. Again I don't know, but this could be found out
Sorry, I can't tell you whether to cover now. I don't
The biggest question mark in my mind for any Korean
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
in Korea have enough money to pay
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.
anyone verify one way or the other, preferably with a
link to an official announcement or a newspaper
Thank you very much.
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
Thank for your thoughts, everyone.
I apologize. I am an idiot. I know nothing,
about Korea. I hope you went ahead and
despite my mealy-mouthed caveat.
I really understand is the principle: a share
any other name would smell as sweet.
Gertrude Stein riffed: a share is a share is a
This allows for generally profitable arbitrage. It
says nothing about naked long or short
Actually, I just covered a small naked short position yesterday
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).
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.
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