Korean Stock Trading

[fareastwarriors]

http://www.marketfolly.com/2013/05/li-lus-sohn-conference-presentation-on.html

[yitech]

yitech,

 

can you please tell me where I can find a recording of Li Lu pitching korea preferreds?

 

thanks!

 

Check out the link fareastwarriors posted.

He also mentioned briefly on the Korean preferreds in his San Francisco State University talk in April:

Part1:

Part2:

Part3:

 

[claphands22]

Investment Case for Hyundai Mobis Preferreds

 

Published by: Guy Spier on Feb 02, 2013

Presentation by Chris Detweiler at VALUEx 2013

 

http://www.scribd.com/doc/123485753/Investment-Case-for-Hyundai-Mobis-Preferreds

[yadayada]

Infovine is an interesting one. Cannot figure out now how to get those annual reports tho. I managed to get annual statements translated to english with google translate the other day.

 

They got roughly 40 bn in cash, no debt and generate over 10 bn. Was even cheaper a while ago with a PE of 5.5 :(

 

There is a good write up on VIC on this company as well.

[randomep]

Does anyone know of a broker that can buy/sell Korean securities as well as US and European securities?  I looked at both IB and Fidelity and they don't appear to be able to Korean markets per their website.

 

Packer

 

thanks Packer, I looked at their website but it seems like a person but be living in korea to sign up....

 

 

[fareastwarriors]

I thought e-trade works. I think I saw the info on this thread or another one on the forum.

[JBird]

Fidelity has access to the Korean market including the preferreds. They don't show it on their site but I called and confirmed with them.

[plato1976]

That's nice

But I suppose you can not put an online order and have to call them to put an order ?

 

Fidelity has access to the Korean market including the preferreds. They don't show it on their site but I called and confirmed with them.

[JBird]

That's nice

But I suppose you can not put an online order and have to call them to put an order ?

 

Fidelity has access to the Korean market including the preferreds. They don't show it on their site but I called and confirmed with them.

 

Yes. It is an $80 commission. The Fidelity broker routes the trade through a Korean broker. The Korean broker charges an additional commission of ~10bps.

[randomep]

Does anyone know why Korea makes life for us foreigner investors so difficult?

[muscleman]

That's nice

But I suppose you can not put an online order and have to call them to put an order ?

 

Fidelity has access to the Korean market including the preferreds. They don't show it on their site but I called and confirmed with them.

 

Yes. It is an $80 commission. The Fidelity broker routes the trade through a Korean broker. The Korean broker charges an additional commission of ~10bps.

 

On top of that, do you also need to pay for the USD/KRW exchange fee? Fidelity normally charges 1% per side for forex.

[Kiltacular]

Packer or others who have looked into it, can you tell me what the current dividend is on the Hyundai preferred 005385 and, if possible, how you found it?

 

TIA

[JBird]

Packer or others who have looked into it, can you tell me what the current dividend is on the Hyundai preferred 005385 and, if possible, how you found it?

 

TIA

 

https://www.google.com/finance?q=005385&ei=BOf7Uqj1GofpqAGeiQE

[Kiltacular]

Packer or others who have looked into it, can you tell me what the current dividend is on the Hyundai preferred 005385 and, if possible, how you found it?

 

TIA

 

https://www.google.com/finance?q=005385&ei=BOf7Uqj1GofpqAGeiQE

 

Is that correct?  The yield is 1.54%?

[yadayada]

Does anyone know why Korea makes life for us foreigner investors so difficult?

It is an extremly conservative country. internet porn is blocked everywhere. You actually cannot say bad things or be overly critical about government. So i guess they keep a tight control and regulation on everything. Which probably doesn't help for companies like IB to operate there?

[fareastwarriors]

Does anyone know why Korea makes life for us foreigner investors so difficult?

It is an extremly conservative country. internet porn is blocked everywhere. You actually cannot say bad things or be overly critical about government. So i guess they keep a tight control and regulation on everything. Which probably doesn't help for companies like IB to operate there?

 

Despite how rich the country is, their market is considered emerging market.

 

[thelads]

Hi everyone, another way of getting exposure is to look at the Weiss opportunity fund. I believe it's listed in London. Basically doing this trade accross Korean prefs.

 

http://www.weisskoreaopportunityfund.com/cgi-bin/index.pl

 

I think it is currently trading at a premium so maybe good to wait for a discount. One other thing, may not be too relevant, but just in case someone cares. Samsung common is the largest component of the EEM etf. So as people have been freaking out they have been selling this and that has caused pressure and thus on a lot of Korean names.

 

[Guest ajc]

Hi everyone, another way of getting exposure is to look at the Weiss opportunity fund. I believe it's listed in London. Basically doing this trade accross Korean prefs.

 

http://www.weisskoreaopportunityfund.com/cgi-bin/index.pl

 

I think it is currently trading at a premium so maybe good to wait for a discount. One other thing, may not be too relevant, but just in case someone cares. Samsung common is the largest component of the EEM etf. So as people have been freaking out they have been selling this and that has caused pressure and thus on a lot of Korean names.

 

Some more on London-listed WKOF (http://investingsidekick.com/aim-project-leg-igc-wkof/) via valueandopportunity.com

 

And, a bit on Korean preferred stocks (http://ify.valuewalk.com/wp-content/uploads/2014/02/moi201401_ideas-korea.pdf) from Manual Of Ideas.

 

 

[Guest ajc]

Interesting, potentially IKEA-like, South Korean business mentioned here - http://www.moatreport.com/swedish-model-asia/

 

Hanssem (009240 KS) has a current market cap of US$1.5bn.

According to MSN (http://investing.money.msn.com/investments/key-ratios?symbol=KR%3aA009240&page=TenYearSummary & http://investing.money.msn.com/investments/financial-statements?symbol=KR%3aA009240)

in 6 years they've doubled ROE and BVPS, as well as quadrupling EPS and shrinking the share count.

Also, insiders own a lot of stock (http://hanssem.com/jsp/eng/irFaq.jsp).

 

They already have a number of dealers in the US (http://www.hanssemamerica.com/locations/index.htm), and here's a short article (http://www.koreatimes.co.kr/www/news/biz/2014/03/123_152801.html) about their expanding product range, increasing presence in China and plan to become the #1 furniture company in North-East Asia over the next few years.

 

Risks seem like executing their expansion successfully, possible price war with IKEA going forward, moves by Amazon/Alibaba in this space and whether or not their goods - which I'm not familiar with - are, and can stay, competitive on pricing and quality.

 

Upside includes a potential early-stage compounder, management appears to be excellent and if they get good access to China then that could be a really big opportunity for them.

 

http://image.hanssem.com/upload/resource/company/2012AR_eng.pdf (Their 2012 Annual Report)

 

 

[siddharth18]

Relevant: https://s3.amazonaws.com/assets.hvst.com/uploads/attachment/file/294/Korean_Preferred_Stocks_Harvest_Writeup.pdf

[alwaysinvert]

http://www.ft.com/intl/cms/s/0/37796a04-b8e3-11e3-835e-00144feabdc0.html?siteedition=intl#axzz2xago7tcJ

[finetrader]

I bought Hyundai preferred on the LSE (using IB) this morning. An opportunity I couldn't passed on.

[rainman]

I bought Hyundai preferred on the LSE (using IB) this morning. An opportunity I couldn't passed on.

 

What is the symbol ?

 

Thanks

[Guest hellsten]

 

I bought Hyundai preferred on the LSE (using IB) this morning. An opportunity I couldn't passed on.

 

What is the symbol ?

 

Thanks

 

See yitech's post:

You can purchase London-based GDRs for Hyundai and Samsung preferred shares via Interactive Brokers.

The conversion ratios are 2:1. You can divide the closing price in Korea by 2 and convert it from Korean Won to USD.

 

HYUD (HYUD.IL under Yahoo Finance) is the shares for Hyundai Preferred class 1 share (005385.KS). 4X P/E currently.

SMSD (SMSD.IL under Yahoo Finance) is the shares for Samsung Preferred share (005935.KS). 5X P/E currently.

 

Both were trading at larger discount to commons (005380.KS for Hyundai common and 005930.KS for Samsung common) around May/June, but the discount has been narrowing since.

They are under the exchange symbol LSEIOB1 for IB accounts.

 

Also see:

http://www1.interactivebrokers.ch/contract_info/v3.8/index.php?action=Stock%20Search&entityId=e1441584&lang=en&wlId=IB&showEntities=Y

[phil_Buffett]

http://www.weisskoreaopportunityfund.com/documents/FG/weiss/docs/188742_Weiss_Korea_Annual_Report_Dec_2013_FINAL_unsigned.pdf

 

 

for those who are interested. the weiss annual Report. he talks about the preffered Shares, biggest Holdings in the fund and so on. interesting.

 

 

cheers