fareastwarriors Posted August 25, 2017 Share Posted August 25, 2017 Samsung Heir Gets 5 Years for Scandal That Toppled a President https://www.bloomberg.com/news/articles/2017-08-25/samsung-heir-sentenced-to-five-years-prison-on-graft-conviction Link to comment Share on other sites More sharing options...
Jurgis Posted August 25, 2017 Share Posted August 25, 2017 Heir today, gone slam tomorrow... ;D Link to comment Share on other sites More sharing options...
alwaysinvert Posted May 16, 2018 Share Posted May 16, 2018 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. Link to comment Share on other sites More sharing options...
ebdem Posted November 19, 2018 Share Posted November 19, 2018 Hey guys, At IVIC18, we had to presenters mentioning Samsung as a long. You might enjoy the presentations: Andrés Allende of cobas and Kurt Kara of Maj Invest: https://youtu.be/DawykLU_Ytc. It really looks cheap at the moment. I hope some of the catalysts will be realized, as I am also invested. Link to comment Share on other sites More sharing options...
ebdem Posted February 8, 2019 Share Posted February 8, 2019 Hey there, this might be also interesting for you - a case on SK Hynix, another semiconductor manifacturer from South Korea: Enjoy! Link to comment Share on other sites More sharing options...
alwaysinvert Posted February 10, 2020 Share Posted February 10, 2020 South Korea has put a 30% cap on the weight of any individual company on the KRX index, which Samsung borders on running afoul of. https://pulsenews.co.kr/view.php?year=2020&no=73542 Possible that this is weighing down on the company's valuation. Murmurs about Samsung Electronics splitting in a chip and handset business, which would be logical and make peer valuation much more straighforward. I have also seen claims that this would make inheritance tax planning more easy, although I don't know exactly how that would work. But who knows - nobody even knows if Lee Kun-hee has been alive since 2014. Which I have to grant them is a very creative tax avoidance scheme. Link to comment Share on other sites More sharing options...
Foreign Tuffett Posted February 11, 2020 Share Posted February 11, 2020 South Korea has put a 30% cap on the weight of any individual company on the KRX index, which Samsung borders on running afoul of. https://pulsenews.co.kr/view.php?year=2020&no=73542 Possible that this is weighing down on the company's valuation. Murmurs about Samsung Electronics splitting in a chip and handset business, which would be logical and make peer valuation much more straighforward. I have also seen claims that this would make inheritance tax planning more easy, although I don't know exactly how that would work. But who knows - nobody even knows if Lee Kun-hee has been alive since 2014. Which I have to grant them is a very creative tax avoidance scheme. I was unfamiliar with the Lee Kun-hee situation. So the Chairman of the Samsung has, in all likelihood, been in a vegetative state (or even dead) since May of 2014? And his family has every incentive to keep him "alive" to avoid an absolutely massive inheritance tax? Completely bonkers. Link to comment Share on other sites More sharing options...
alwaysinvert Posted February 11, 2020 Share Posted February 11, 2020 South Korea has put a 30% cap on the weight of any individual company on the KRX index, which Samsung borders on running afoul of. https://pulsenews.co.kr/view.php?year=2020&no=73542 Possible that this is weighing down on the company's valuation. Murmurs about Samsung Electronics splitting in a chip and handset business, which would be logical and make peer valuation much more straighforward. I have also seen claims that this would make inheritance tax planning more easy, although I don't know exactly how that would work. But who knows - nobody even knows if Lee Kun-hee has been alive since 2014. Which I have to grant them is a very creative tax avoidance scheme. I was unfamiliar with the Lee Kun-hee situation. So the Chairman of the Samsung has, in all likelihood, been in a vegetative state (or even dead) since May of 2014? And his family has every incentive to keep him "alive" to avoid an absolutely massive inheritance tax? Completely bonkers. Right, and his son went to jail for buying a horse to the daughter of the adviser to the former president so that the government would support a merger in order to strengthen family control and make succession easier. The president was later ousted and shown to have been in the grips of a shamanistic cult headed by said advisor. Luckily, the son got early release just in time for the Olympics, so it's all cool. Link to comment Share on other sites More sharing options...
alwaysinvert Posted September 2, 2020 Share Posted September 2, 2020 Samsung Life might be forced to unload about 20 trillion won of Samsung Electronics shares if new regulations get passed in parliament. Some analyses here: http://www.koreaninvestors.com/?p=11828 http://www.businesskorea.co.kr/news/articleView.html?idxno=51245 https://www.koreatimes.co.kr/www/tech/2020/09/133_295296.html In short, there are two solutions. Either SEC repurchases the stock held by the insurance companies - this is the simplest, most shareholder friendly and tax efficient solution. However, this weakens the family's hold. The other solution involves Samsung C&T (the now de facto family holding company) selling shares of Samsung Biologics, presumably to Samsung Electronics, in order to finance purchases of Samsung Electronics shares from the insurance arms. This involves significant tax leakage in realizing shares of Biologics and it is likely value-destroying for Samsung Electronics. Meanwhile Jay Y Lee is in new legal trouble for the way in which he created the current Samsung C&T back in 2015 by screwing minority shareholders. edit: The repurchase route might not be any more tax efficient than the Biologics route, I don't know. Link to comment Share on other sites More sharing options...
alwaysinvert Posted October 25, 2020 Share Posted October 25, 2020 Lee Kun-hee is officially dead. This probably has some pretty big ramifications for Samsung Electronics. It could mean that they will start paying larger dividends, which they could easily afford (end of Q2 they had net cash of 96T won, or $85b). It could also mean that they will buy stakes in other Samsung associates from Jay Y Lee in order for him to afford the inheritance tax. We will see. http://www.koreaherald.com/view.php?ud=20201025000226&np=1&mp=1 Link to comment Share on other sites More sharing options...
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