Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

I investigate special situations, pairs, and index rebalancing trades in Korea.

Korea / Special Sits, Pairs, Index Rebalancing

Local Pensions' Spot/Futures Arb on Samsung Electronics & 1P Discount Distortion

Korea Share Class Pair Trade: Assessing 3 Large Cap Prefs Below -1σ

Korea Large-Cap Prefs: Pref-Ord YTD Yield Difference & 20-Day MA Sigma

Gravity Works As WeWork Doesn't; Now Plan B

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

Samsung Electronics Pref Shares / Event-Driven

Samsung Electronics Pref Shares (005935 KS)

<ul>
<li>This year's consensus OCF is at least ₩75T, and CAPEX is ₩45T, less than last year. As a result, we will likely reach an FCF of ₩30T.</li>
<li>Then the yearend special DPS would be ₩764, which provides dividend yields of 2.97% (Ord) and 3.22% (Pref), respectively, even based on the conservative OCF estimates.</li>
<li>This is a sufficiently attractive dividend yield for Pref. Hence, unless the SEC's price enters a sharp uptrend, the bullish Pref will likely continue. </li>
</ul>


This year's consensus OCF is at least ₩75T, and CAPEX is ₩45T, less than last year. As a result, we will likely reach an FCF of ₩30T.
Then the yearend special DPS would be ₩764, which provides dividend yields of 2.97% (Ord) and 3.22% (Pref), respectively, even based on the conservative OCF estimates.
This is a sufficiently attractive dividend yield for Pref. Hence, unless the SEC's price enters a sharp uptrend, the bullish Pref will likely continue. 


Samsung Electronics Yearend Special Dividend Projections