DOW TECHNOLOGY, S2W, Flitto Investment Strategy

As geopolitical conflicts among Iran, the United States, Greater China, and Russia deepen, the risk of war is emerging as a long-term issue that is difficult to resolve in the short term. CEO Kim Deok-ho raised the possibility that Iran could be used as a scapegoat in the Middle East situation. The resulting increase in oil prices and year-over-year burden is expected to continue until March of next year.

Now is the time for the market to focus on sectors with strong fundamentals, that is, leading stocks such as power equipment and semiconductors. CEO Kim analyzed that stocks that fluctuate sharply based on individual issues are unlikely to become leading stocks. He advised investors to prepare for market uncertainty by implementing profit-taking and cash-securing strategies ahead of next week's FOMC meeting.

As part of IT companies' strategy to reduce new investment costs and ensure cost-effectiveness, stable rental income is expected during the 7-year lease period.

CEO Kim Deok-ho evaluated that the positive news of DOW TECHNOLOGY's Naver Cloud contract has already been reflected in the stock price. He also mentioned that DOW TECHNOLOGY's high debt ratio (approximately 1200%) is due to its financial subsidiary investment structure, and analyzed that the strength of AI infrastructure benefits is insignificant. Therefore, he judged that a selling strategy for profit realization is necessary at this point.

S2W is attracting attention in the security ecosystem by participating as a partner in the Daybreak project. At a time when the reliability of security programs is being re-evaluated due to Anthropic Claude's security issues, S2W's strategy is to secure dominance with an AI-based white hacker approach. This could be an opportunity to preempt the issue of legalizing customer damage relief measures, but it was analyzed that the Republican National Convention in the US and the trend of curbing OpenAI should be considered.

S2W's stock price momentum is high in the short term, but actual benefits are likely to be concentrated on large domestic customers such as Samsung SDS and LG CNS. Accordingly, the market share is expected to solidify around large companies. CEO Kim advised that a strategy of selling when the stock price rises in the short term and re-entering during a correction is effective at this point.

Flitto's operating profit significantly declined year-over-year, due to a decrease in language data revenue. In particular, the decline in Korean token purchases by US hyperscale companies had an impact. Criticism was raised that solidification as a data provider, like in the case of Hancom, is necessary.

Flitto is seeing intense interest in the market dominance of global big tech companies like OpenAI and Google. With all stocks currently focused on the FOMC event, a strategy of leveraging the market atmosphere after the FOMC is far more advantageous than clinging to short-term gains. Therefore, CEO Kim Deok-ho advised to sell and observe the market environment.