CEO Yoo Chang-hee Presents Optimistic Outlook for September Stock Market

Yoo Chang-hee, CEO of Yoostock, set a target price for SK Hynix shares at over 1.72 million won, making a coffee bet with other panelists due to the difference from the current price. This demonstrates Yoo's strong conviction in Hynix's stock price.

Park Ha-yoon mentioned 'Pumpkin Hyung' who set a target of 1.83 million won on another channel and suggested a bet that if the stock price doesn't reach the target, he would buy coffee, instead of just talking.

A debate erupted over credit loan interest rates. CEO Yoo Chang-hee claimed he was applied a 4.3% interest rate and stated that interest rate reductions are possible by negotiating with securities branch offices.

Conversely, a counter-argument was raised that interest rates of over 7% apply after 30 days. In response, Yoo reiterated that branch managers have the discretion to lower rates by about 1-2% and advised investors who frequently use credit loans to negotiate with their담당 직원 (account manager).

Both positive and negative views on leveraging (credit) in stock investment were presented. CEO Yoo Chang-hee called leverage the 'flower of capitalism,' acknowledging it as a means to increase capital efficiency.

However, he pointed out that unlike real estate, stocks are very volatile and risky. He added that a mere 30-40% drop in stock prices could 'wipe out' an account, so he does not recommend it for general investors.

Given this risk, advice was given to avoid using leverage if possible, and a cautious approach was predominantly suggested, especially considering the rapid volatility of the stock market.

Marvell Technology, which supplies products for data centers, saw its stock price plummet by over 8% after announcing poor guidance (performance outlook). Marvell is a major supplier of Application-Specific Integrated Circuits (ASICs) for data centers.

CEO Yoo Chang-hee explained that due to the nature of custom chip supply, there can be a time lag, which led to Marvell's short-term underperformance. This exemplifies how the complexity and time delays in the semiconductor design and supply chain impact earnings.

CEO Yoo Chang-hee provided a very positive outlook for the September stock market. He sees the September market as better than August and considers the current semiconductor market decline to be a temporary phenomenon.

Yoo emphasized that investors need not be frustrated by the current situation, analyzing that the short-term adjustment in the semiconductor industry will not harm the long-term upward trend. This optimistic view appears to be based on a comprehensive consideration of overall economic indicators, corporate earnings, and technological development trends.

CEO Yoo Chang-hee cited the near completion of U.S. corporate earnings announcements by mid-November as the reason for his positive outlook on the stock market until then. He analyzed that uncertainty will be resolved after earnings season, which could positively impact stock prices.

He believes there is a high possibility of stock price appreciation given earnings and overall economic conditions. He also advised against reacting excessively to short-term volatility, preparing for potential adjustments with a time lag rather than immediately after the midterm elections.

CEO Yoo Chang-hee analyzed that the practical impact of the U.S. semiconductor tariff threat would be limited. He pointed out that if it were a serious issue, Samsung Electronics and SK Hynix should have plummeted by over 5%, and Micron by 7-8%, but this has not been the case.

Yoo interpreted this U.S. pressure as a strategic card aimed at securing domestic production facilities and attracting investment. He emphasized that given the ongoing global semiconductor shortage, imposing high tariffs would ironically harm U.S. big tech companies and consumers.

Therefore, he explained that the fact that major semiconductor companies like Samsung Electronics and SK Hynix are not immediately plummeting reflects the market's incorporation of these complex circumstances.

Last-minute negotiations are taking place regarding the first U.S. investment project by a Korean company. Conflicts over ownership and profit distribution methods, particularly in power plant-related businesses, are key issues.

CEO Yoo Chang-hee explained that detailed coordination is underway on 'whether this is U.S. or Korean ownership,' and 'how equity will be structured, and when, how, and by whom profits will be taken.' Negotiations between the U.S. Department of Commerce and the Korean Ministry of Industry are proceeding closely with the goal of project confirmation next month.

With the deepening power shortage, interest in energy-related sectors has been suggested. CEO Yoo Chang-hee emphasized that continuous attention should be paid to nuclear power, as well as renewable energy fields such as solar and wind power.

In particular, he gave a positive outlook for Doosan Enerbility, setting its target price at 100,000 won. He also mentioned that construction stocks like GS E&C should be viewed from a low-cost buying perspective in relation to energy infrastructure expansion.

Demand for Battery Backup Units (BBUs) in data centers is surging, and Samsung SDI's role in this regard is drawing attention. CEO Yoo Chang-hee named Samsung SDI as a company capable of mass-producing BBUs.

Samsung SDI possesses the technology to effectively produce and supply emergency battery systems that respond to instantaneous power loads in data centers. He analyzed that Samsung SDI's strength could lead to a simultaneous rise in related companies within its value chain, such as Hansol Chemical, L&F, and POSCO Future M.

BBUs (Battery Backup Units) play a critical role within data center racks by supporting instantaneous power supply. CEO Yoo Chang-hee explained that they aid stable operation by leveling power when fluctuations in power load occur.

In particular, the role of BBUs becomes even more crucial when the VeraRubin 800V system is applied. This signifies that BBUs are becoming essential components for stable power supply and efficient operation of data centers.

With the worsening lack of power infrastructure and advanced manufacturing capabilities in the U.S., an analysis emerged that long-term partnerships with Korean companies are essential. CEO Yoo Chang-hee stated that from a long-term perspective of 10 or 20 years, the U.S. would face significant difficulties without Korea as a partner.

This suggests that Korea can play an important role in the U.S. industrial restructuring process based on its advanced technology and manufacturing capabilities. U.S. investments and technological cooperation with Korean companies are expected to further expand in line with America's policy of strengthening domestic production.

The U.S. cybersecurity software market grew significantly, leading to a surge in related company stock prices. Salesforce rose by 22%, CrowdStrike by 20%, and Okta by 28%, showing notable strength.

CEO Yoo Chang-hee mentioned that a cautious approach is needed regarding the possibility of this U.S. market trend extending to domestic security stocks. He advised careful analysis of the characteristics of the domestic security market and the competitive strengths of individual companies before investing.

Even during market downturns, the beauty and consumer goods sectors have maintained a strong performance. CEO Yoo Chang-hee explained that the beauty sector tends to strengthen when the market is shaky.

Indeed, Amorepacific, APR, Kolmar Korea, and Samyang Foods showed strength. Silicon2, in particular, was mentioned as a stock consistently drawing attention, acting as a 'catalyst' in the market.

An analysis suggests that SK Hynix and Samsung Electronics' share buybacks are positively impacting the stability of their stock prices. CEO Yoo Chang-hee assessed that the two companies' combined daily buyback of 1.5 to 1.6 trillion won in their own shares is a significant help, even amid a flood of foreign selling.

He explained that while share buybacks may not immediately boost stock prices significantly, their role in absorbing unwanted sell-offs and supporting the downside will have a good long-term effect. He added that if foreign demand does not return, concerns about that risk can be addressed after October.

Individual investors who suffered massive losses from investing in major stocks like Samsung Electronics have shown severely dampened investment sentiment. CEO Yoo Chang-hee diagnosed that investors stuck with shares at 2.2 million won and 2.5 million won are 'in a state of lost morale.'

They are pondering thoughts like 'I thought I was good at stocks' and 'Should I withdraw money to move homes or buy a car?' He also explained that they feel psychological pressure that if they attempt other investments with remaining funds and fail, they might lose their dignity, authority, and even their humanity.

He warned that this psychological fatigue makes investment decisions even more difficult and carries a high risk of leading to wrong choices, such as reckless chase buying.