Stock price when the opinion was issued
Hard to know what 2024 landscape will look like in the western world. Hard times already felt in China and Asia, so this is a bit of a bet on Asia-Pacific. Mammoth company. Largest DRAM (memory) chip maker. Second to TSM as a foundry, 59% share vs. 13%. Samsung wants to double its share in 5 years. Great report. Yield is 2%.
No ADR. Trades on the London Stock Exchange. Buy in thirds at $1360, $1300, and $1200.
They’ve had a number of negative things, such as exploding phones and a corruption probe. When looking at the financials, you see a big line item that comes from semiconductors, which is one of their big drivers. Ultimately though, that is a supplier to the phones, smart devices and a lot of other related paraphernalia. If there is a slowdown in the phone segment, then you definitely get a slowdown in semiconductors and their ability to use the semiconductor division to derive additional revenues through third-party relationships. It has been a fabulous stock, but at this point it is too rich.