Author Topic: SSNLF - Samsung Electronics  (Read 20131 times)

fareastwarriors

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Re: SSNLF - Samsung Electronics
« Reply #50 on: August 25, 2017, 09:09:17 AM »


Jurgis

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Re: SSNLF - Samsung Electronics
« Reply #51 on: August 25, 2017, 09:12:22 AM »
Heir today, gone slam tomorrow...  ;D
« Last Edit: August 25, 2017, 09:14:55 AM by Jurgis »
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alwaysinvert

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Re: SSNLF - Samsung Electronics
« Reply #52 on: May 16, 2018, 08:45:19 AM »
I've owned this (the preferred GDR) for a couple of years and to my mind it is still an incredibly cheap stock. They earned 42 trillion Won last year and that will likely rise to about 50 this year. The EV calculated on the preferred is just north of 200.

Even if the chip boom peters out the stock is far from expensive. The capital allocation has improved and 50% of FCF will go towards dividends and buybacks in the coming three years. The combined buyback/dividend yield will approach 10%.

You can look at it this way: their shareholder returns are a couple of years behind Apple in their development. You can get this with healthy growth and at a 20% discount to the common stock if you buy the GDR. The moves towards better corporate governance and more optimized capital allocation are not fast but they are still undeniable at this point.

I'd love to hear an alternative perspective. 
« Last Edit: May 16, 2018, 08:52:05 AM by alwaysinvert »