Brokerages ignored risks to issue buy opinions on short-sold stocks: data

[THE INVESTOR] Local brokerages were reticent to issue sell opinions on stocks that were broadly short-sold, according to industry data on July 8. Of the top 20 stocks that were short-sold based on July 8 disclosures, more than 70 percent of securities firms here issued a buy opinion over the past three months.A total of 35 brokerages had issued neutral opinions, with just one having a sell opinion. Short-selling is essentially betting that a stock’s market value will decline. Investors sell sha

July 9, 2016

[ANALYST REPORT] LG Electronics: Shares at rock bottom, focus on business restructuring

2Q16 operating profit to meet consensus at W591bnMC division to narrow losses based on efficient operations ¨ Fundamentals to improve on ramp-up of EV parts business ¨ Retain BUY for a target price of W77,000LG Electronics is projected to have posted 2Q16 operating profit of W591bn (+17% QoQ, +142.3% YoY) on sales of W14.42tr (+7.9% QoQ, +3.5% YoY), meeting the consensus (W597bn). The figure is expected to have missed our previous projection (W626bn) with the G5 recording sluggish sales and LG I

July 8, 2016

[ANALYST REPORT] NAVER: LINE share price hike to bolster NAVER‘s shares

LINE’s IPO is fast approaching. Noting the recent increase in LINE’s IPO price band to JPY2,900~3,300, it appears that the LINE book building process garnered a positive response.2Q16 results to confirm domestic portal growth Our predictions place NAVER’s consolidated 2Q16 sales at W992.5bn (up 27.1% y-y, up 5.9% q-q) and operating profit at W261.6bn (up 56.5% y-y, up 1.9% q-q), with operating profit likely meeting consensus of W266.4bn.NAVER’s 2Q16 domestic advertising sales (which rallied 21.2

July 8, 2016

Samsung Electronics’ operating profit to hit W29.5tr this year: Dongbu Securities

[THE INVESTOR] Dongbu Securities said on July8 that it will keep a “buy” opinion on Samsung Electronics shares as it expects the tech giant’s 0perating profit to increase 11.6 percent to 29.5 trillion won (US$2.5 billion) this year.The brokerage also kept unchanged the price target of 1.8 million won.On July 8, Samsung Electronics closed 0.69 percent higher at 1,460,000 won. Dongbu based the upbeat forecast on Samsung’s second-quarter operating profit, which stood at 8.1 trillion won, up 17.4 pe

July 8, 2016

Demand growing for safer, short-term investment tools on uncertainties

[THE INVESTOR] The lingering uncertainties in the global financial markets including the impact of Britain’s latest decision to quit the European Union are fueling a demand for safer, short-term investment tools.As of the end of May, funds in fixed deposits of six months or less, money market funds and other short-term financial products reached 876.2 trillion won (US$ 756.9 billion), according to the Bank of Korea and Hana Institute of Finance.When adding assets which are considered stable, suc

July 8, 2016

South Korean share prices down on THAAD decision

[THE INVESTOR] South Korean share prices declined on July 8 after the country and its main ally, the US, agreed to deploy a high-tech antiballistic-missile interception system in Korea. The benchmark KOSPI index closed 0.56 percent lower at 1963.01 points as exporting firms like cosmetic makers became big losers. Investor sentiment was down, analysts said, on concerns over the possibility of diplomatic tension with China and Russia following the THAAD decision. South Korea and the US agreed to d

July 8, 2016

Sampyo mulls IPO to repay debt

[THE INVESTOR] Sampyo, South Korea’s No. 2 ready-mixed concrete manufacture, plans to get listed to recoup its investment on the acquisition of Tong Yang Cement last year, sources said on July 8. “We are considering an initial public offering to improve our financial health in the long term as economic conditions in the construction industry are projected to deteriorate,” an official at Sampyo said.  SampyoAccording to investment bank officials, Sampyo sent out a request for proposals to brokera

July 8, 2016