Stephen Yacktman

Stephen Yacktman On The (Detailed) Bullish Case For Samsung Prefs

Samsung (Preferred Stock – Korea: 005935) is a megacap technology company that trades at a steep discount to any of its global peers. At current prices the preferred, which in Korea is like a non-voting common, sells for less than the value of its semiconductor business plus net cash + investments. In total, Samsung has leadership positions in Mobile, Semiconductor, Display, and Consumer Electronics businesses and should generate more than $190 billion in sales in 2014 and $22 billion in operating income. Samsung has made significant investments in foundry and display, which offer potentially significant upside if successful. After accumulating significant excess cash on the balance sheet over the last few years, the company recently announced a share repurchase and potential dividend increase, which could boost interest in the shares. The company is also undergoing a transition in leadership which could help increase the value of the shares. The preferred trades for slightly more than 3 x 2014 EV/EBIT, which is an extraordinary discount to global peers.

Stephen Yacktman and Jason Subotky on Samsung Preferreds

Watch the video (above) or listen to the audio below:

Stephen Yacktman

LEAVE A COMMENT


Saved Articles
X
TextTExtLInkTextTExtLInk

Are you a smart investor? Join tens of thousands of sophisticated investor reading our authoritative free newsletter

* indicates required

Opt out of occasional 3rd party offers


Congrats! Are you a smart person? We have a limited time offer for sophisticated and loyal readers like yourself.

Sign up today and get three months free

Use coupon code VIP19 or click on the button below

Limited time offer only expires 8/31/2019 or next 30 now just 7 subscribers whichever comes first – please do not share this discount with others

 

0