Foreign investors sold 22 trillion won of Samsung and SK hynix while Micron and TSMC rose about 12%
Foreign investors sold a net 22.1 trillion won of Samsung and SK hynix between Aug. 31 and Oct. 8, while both gained under 1% and Micron rose 11.9%. Micron's bigger run this year makes profit-taking a poor explanation for the gap and points to money leaving Korean listings in particular.
Reality
- Evidence62
- Adoption
- Not scored
- Hype gap+15
- Incentives
- Not scored
- Confidence58
Foreign ownership of Samsung Electronics fell to 46.38%, its lowest since January 2008, in the week Samsung posted a record 107 trillion won quarterly profit. The six points foreign funds sold went to domestic holders and a Samsung buyback that Yuanta Securities says has ended.
Perspective Coverage
3 publishers
- Builder
- Builder 7%
- Operator
- Operator 13%
- Investor
- Investor 80%
Reality
- Evidence82
- Adoption
- Not scored
- Hype gap+10
- Incentives
- Not scored
- Confidence74
The board approved up to 125 trillion won for this year, but three quarters of a three-year program lands in one payment. The "megacycle" that follows is a forecast, not a policy.
Reality
- Evidence70
- Adoption
- Not scored
- Hype gap+35
- Incentives60
- Confidence65
SK hynix accounted for 12 trillion won of the 20.3 trillion won that foreign investors sold net on the KOSPI between Sept. 1 and Oct. 2. With Samsung Electronics included, two memory makers carried about 85% of it, leaving little foreign selling for the rest of the market.
Reality
- Evidence80
- Adoption
- Not scored
- Hype gap+5
- Incentives
- Not scored
- Confidence78
SK hynix puts 99.5% of its 1,105 trillion won fab program inside South Korea
Kwak Noh-jung told a Santa Clara forum that new production bases will defend SK hynix's memory lead. The four named sites add to 1,105.4 trillion won. Indiana's fab is 5.4 trillion of that, and Japan is still under consideration.
Reality
- Evidence40
- Adoption
- Not scored
- Hype gap+35
- Incentives80
- Confidence45
A Seeking Alpha sell call prices Micron 17% below where it trades
Micron's gross margins, which the note puts near 85-86%, leave under 15 points of possible expansion. The valuation that follows from that ceiling is $840.24 a share, about 17% below a market price the note does not print.
Reality
- Evidence20
- Adoption
- Not scored
- Hype gap+30
- Incentives45
- Confidence35
Two sessions of oil and yields take back 39% of the KOSPI's weekly advance
The KOSPI closed at 6,909.91 on the 11th, back below 7,000 but still up 3.33% for the week, and the memory names that led the advance fell again in New York on a day Brent dropped 2.81%.
Reality
- Evidence58
- Adoption
- Not scored
- Hype gap+10
- Incentives62
- Confidence55
Retail investors sold 16.8 trillion won into Korea's chip rally in five sessions
The KOSPI closed above 7,000 for the first time in 33 sessions on the 9th and gave the level back within two days, with Brent above $100 a barrel and the US 10-year at 4.97% ahead of next week's FOMC.
Reality
- Evidence55
- Adoption20
- Hype gap+30
- Incentives60
- Confidence55
A $27bn memory ETF with a quarter in Micron is not diversified exposure
Roundhill's DRAM fund has reached $27.44bn in under five months with 25.42% in one chipmaker. That is roughly $6.97bn of single-name risk wrapped in a theme.
Reality
- Evidence38
- Adoption71
- Hype gap+18
- Incentives62
- Confidence44