Samsung Electronics’ stock price falls further． The stock has fallen below 56，000 won， with 191 trillion won of market capitalization evaporating． How long will the selling continue？
On Friday, October 25, 2024, the stock price of South Korea’s Samsung Electronics fell further (chart taken from investing.com: same below). The closing price on Friday the 25th was 55,900 won. It fell below 56,000 won. As you can see above, the candlestick shape is not good. (I don’t think I’d say this) It’s shaped like a hammer, with only a lot of upper hairs and almost no substance. This candlestick chart indicates that the price action is “not going to go up.” If we look at it from a weekly chart, where each candlestick shows one week of price movement, it looks like this: This is the fourth consecutive week of declines. The 16-week downward trend has seen shares fall to levels seen in the final week of 2022. From the opening price of 87,900 won in the first week of July 2024 to the closing price of 55,900 won in the fourth week of October, stock prices fell by a whopping 36.4%, wiping out approximately 191 trillion won. The decline was driven by foreign investors selling large amounts of Samsung Electronics. Foreign investors sold Samsung Electronics shares worth 10.106 trillion won in September alone. October has not yet closed, but one thing to watch will be how long the selling of Samsung Electronics will continue. (Yoshida Hunting @dcp) *Related threads [Chosun Ilbo] “How did Sony and Hitachi recover?” Samsung studies success stories from around the world [10/22] [Insect Encyclopedia★] [Semiconductor War] Taiwan’s “TSMC” wins by a landslide! South Korea’s “Samsung Electronics” is completely defeated. [10/18] [Insect Encyclopedia★] [Hankyoreh Newspaper] Why is Samsung Electronics the only one unable to escape the “winter”? [10/12] [Insect Encyclopedia★]
The lower it goes, the more Koreans see it as an opportunity and take on more debt to buy more. Because of that, it doesn’t fall any lower. The longer it’s prolonged, the more miserable its end will be, but I don’t really care.
Meanwhile, the world’s funai is bankrupt. I can’t pay my salary. “You will be fired immediately.” Employees react to sudden news of Funai Electric filing for bankruptcy: “We thought we could last another few years or months.”
Koreans who were putting their debts into stocks through margin trading would have undoubtedly been buying Samsung shares, so the margin calls are likely to be massive.
It’s not about Korea, it’s just that there really is no growth potential. Stable luxury goods are made in America, and the weird, cheap, advanced goods have been taken over by China. They couldn’t solidify their luxury brands while they had the money, so it can’t be helped.
As for the crucial memory, they failed to develop high-performance memory for AI processors, so no manufacturers are adopting it, and the new line they built for contract manufacturing is deserted. They were probably building it in anticipation of orders from Chinese companies, but they’re stuck with restrictions coming from the US. They’re building a factory in the US, but with TSMC in Japan and TSMC in the US opening manufacturing plants one after another, it’s becoming over-competitive, so Samcheong, with little demand for semiconductors in Korea, has no future.
>>63 I don’t know about semiconductors, but when it comes to cars and Shin Ramyun, exports are expanding, but it seems like inventory is piling up locally (laugh).
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