Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 30 years of experience in the Korean/Asian equity research. Major sectors coverage include the following:
- Technology 
- Consumer 
- Special Situations/Deep Value Plays
- Tender Offers/M&As
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

SK Telecom's CEO Confirms A Major Corporate Governance Reorganization Will Be Completed in 2021

Short SK Telecom on Last Friday's Distorted Gain

SK Telecom MSCI FIF Adjustment Coefficient Drop Back to 0.5: Possibility Checkup

Are You Prepared For the Post Great Rotation Era?

SK Telecom's CEO Park Jung-Ho Becomes Vice Chairman of SK Hynix: Prelude to an Intermediate Holdco?

Major Highlights of SK Telecom's 3Q 2020 Earnings Conference Call

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Equity Bottom-Up

On 17 February, it was revealed that <a href="https://www.wsj.com/articles/buffetts-berkshire-hathaway-bets-billions-on-verizon-and-chevron-11613517434" target="_blank" rel="noopener">Warren Buffett's Berkshire Hathaway</a> invested $8.6 billion in <a href="https://www.smartkarma.com/entities/verizon-communications-inc" target="_blank" data-smartkarma-citation="entities:790:1" rel="noopener">Verizon Communications (VZ US)</a>. At the end of 2020, Verizon was one of the top 10 holdings of Berkshire Hathaway. Not being able to read the mind of Warren Buffett, there are probably three main reasons why he invested billions of dollars in Verizon. <ul>
<li>A big beneficiary of 5G services in the US</li>
<li>A defensive stock with excellent cash flow</li>
<li>Cheap valuations</li>
</ul><div class="content-highlight">Warren Buffett buying a big amount of Verizon is another example of a rotation into value from growth which has been evident in the stock market in the past few weeks. </div>Verizon appears to be an excellent value stock with solid cash flow dynamics and these may be the key reasons why Warren Buffett invested in this stock. For the global investors searching for greater value, SK Telecom could potentially deliver even higher value than Verizon. SK Telecom is currently trading at 4.5x EV/EBITDA (2021) multiples right now, which is 41% lower than the EV/EBITDA multiple of Verizon. The average EV/EBITDA multiple of SK Telecom is 5.0x from 2018 to 2020, which is 33% lower than the average EV/EBITDA multiple of 7.4x for Verizon during this period.

On 17 February, it was revealed that Warren Buffett's Berkshire Hathaway invested $8.6 billion in Verizon Communications (VZ US). At the end of 2020, Verizon was one of the top 10 holdings of Berkshire Hathaway. Not being able to read the mind of Warren Buffett, there are probably three main reasons why he invested billions of dollars in Verizon. 
A big beneficiary of 5G services in the US
A defensive stock with excellent cash flow
Cheap valuations
Warren Buffett buying a big amount of Verizon is another example of a rotation into value from growth which has been evident in the stock market in the past few weeks. Verizon appears to be an excellent value stock with solid cash flow dynamics and these may be the key reasons why Warren Buffett invested in this stock. For the global investors searching for greater value, SK Telecom could potentially deliver even higher value than Verizon. SK Telecom is currently trading at 4.5x EV/EBITDA (2021) multiples right now, which is 41% lower than the EV/EBITDA multiple of Verizon. The average EV/EBITDA multiple of SK Telecom is 5.0x from 2018 to 2020, which is 33% lower than the average EV/EBITDA multiple of 7.4x for Verizon during this period.

Warren Buffett Invests Big in Verizon - Impact on SK Telecom