Shareholder Return Policy Momentum Fades, Index Correction Expected to Continue… Sell-on Concerns for Nvidia Earnings

Although Samsung Electronics' share buybacks are expected to be active from October to November, analysis suggests there are limitations to stock price increases solely driven by share buybacks. The SK Hynix case confirms that stock prices struggled to break through their highs during the share buyback period.

Currently, buying SK Hynix is not recommended. While a technical rebound is possible around 140,000 won, a stock price adjustment is expected around the end of the year when share buybacks conclude. Therefore, the appropriate timing for buying would be closer to the end of the share buyback period.

Among secondary battery related stocks, analysis suggests focusing on all-solid-state battery related stocks centered around Samsung SDI. Additionally, domestic defensive stocks are showing a solid trend due to the strong won, and food and beverage sectors such as Nongshim and Binggrae, along with cosmetic-related stocks, are expected to garner interest. A strategy of focusing on and targeting these stocks is deemed effective.

Analysis suggests that South Korean cosmetic and food & beverage stocks are moving beyond the boom-and-bust cycles of past theme stocks and transforming into stable growth industries. With the spread of the Korean Wave, these products are becoming consumer goods sought after globally, leading to evaluations that a long-term upward blue-chip strategy similar to Coca-Cola is effective. These industries are expected to continue their robust growth going forward.

Hanmi Pharmaceutical's technology exports are estimated to bring in approximately 200 billion won in milestones. This is expected to lead to an increase in ROE (Return on Equity) and a decrease in PER (Price-to-Earnings Ratio), thereby improving valuation. Analysis suggests an additional upside potential of 40% to 60% from the current price, with 700,000 won indicated as the high point. Given that the stock hit the upper limit today, an additional upside potential of about 40% is expected.

In the past, during periods of interest rate hikes, buying gold was recommended as a safe asset, but the stance has now shifted to recommending selling. Analysis suggests that in the event of a liquidity crunch, all assets, including gold, will need to be sold. The opinion was presented that because both stocks and gold are assets, they should be sold during a liquidity crunch.

Regarding Samsung Electronics' shareholder return policy, it was pointed out that a dividend of 50 trillion won compared to a market capitalization of 1,500 trillion won results in a yield of only about 3.3%. This is considered low compared to other companies with dividend yields of 4-5%, leading to criticism that the shareholder return policy is merely a 'numbers game' rather than a 'record high.' The opinion is that a 3.3% dividend yield cannot be considered a bubble.

The price of Bitcoin is expected to peak around 95,000 dollars. There is a possibility of a crash along with a liquidity crisis after forming a peak before the end of the year. The advice is to sell all Bitcoin when the price reaches between 90,000 and 95,000 dollars, approximately at the 95,000 dollar level.

Data was presented showing that corporate bankruptcies have already reached 1,500 cases this year, setting an all-time high. Small and medium-sized enterprise bankruptcies in the first half of the year already surpassed the annual level of the previous year, which indicates the severity of the current economic situation. The fact that it has already surpassed the highest record since statistics began shows that companies are facing increasing difficulties.

A strategy was suggested to refrain from buying until Nvidia's earnings announcement. The weekend immediately after the earnings announcement is considered the opportune time to buy. The advice is to wait patiently until the earnings report is out. A cautious approach is necessary after observing the market's reaction to the announcement.