Opinions
Lorne Steinberg
KB Financial Group
KB-N
COMMENT
Aug 08, 2016
Stock price when the opinion was issued
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South Korea is classified as an emerging market, but it is really more of a developed market. They are actually running a large current account surplus. The banking sector has been trading at very, very cheap levels. This is one of the largest banks in Korea and trading for probably half its intrinsic value. Earnings are going to jump next year, probably in the 25%-30% range. Selling at 9X earnings.
(A Top Pick Oct 7/13. Up 7.87%.) A South Korean bank that is dependent on the South Korean economy. Unlike most emerging market economies, the South Korean is showing some very positive signs. Stock is trading at a very cheap multiple with forecasted double-digit earnings growth over the next 2-3 years.
This is one of the largest South Korean banks. Like Canada, there is a small number of very large banks. The Korean economy has been improving, but the banks are dropping. This bank sells at about half of book value. They all benefit from a decent Korean economy and are major banks to the large Korean companies like Samsung.
KB is a Korean bank. There do a lot of trading with China, so the valuations have come down as a result of the China-US trade war. This is a good time to buy anything Korean, he thinks. He prefers Shinhan, who has just bought INGs insurance business and they have been buying back shares.
One of the largest South Korean banks, and is tied to the South Korean economy, which was suffering from the financial crisis, but has really recovered. It is driven by massive companies like Samsung, LG, Hyundai, Kia, etc. This stock is incredibly well entrenched, trading at a more than reasonable multiple. He is looking for significant earnings growth for the next few years. Offers significant growth at a more than reasonable price. Dividend yield of 2.55%.