Chan Lee on Korea as a Goldmine of Ideas: Value Investing Congress Omaha ~ market folly

Monday, May 7, 2012

Chan Lee on Korea as a Goldmine of Ideas: Value Investing Congress Omaha

Today we're posting up notes from day 1 of the Value Investing Congress.  Below is the presentation from Chan Lee of Petra Capital Management on Korea as an attractive investment opportunity.  Since inception, their flagship fund has returned 20.4% annualized.  The following notes are courtesy of Kyle Mowery from GrizzlyRock Capital.

Korea: A Goldmine for Value Investors

- Korea is the size of the state of Maine; 7th largest exporter & 10th largest importer in the world

- There are more than 100 net nets on Korean stock exchange - two are Samsung Climate Control and Pangrim (textile producer).  Market Folly note: We recently posted up notes from Warren Buffett's meeting with MBA students where the legendary investor said he sees opportunity in Korea as well.

- CJO Shopping: TV home shopping company (71.8% revenue, internet shopping is 18%).  Trades 9.9x earnings and is about $1,000mm USD.  Stock dropped sharply after Chinese JV as market regarded it as weakening position in China.  Public in 2000 acquired by conglomerate.  Received 3 new licenses.  Average ticket higher than QVC, standard shipping is one day.

- KG Inicis: Leading company in online transactions, focused on South Korea.  Not as much Chinese exposure.  Trades at 5.9x earnings.  Payment gateway service which also owns mobile payment business.

Embedded below is Chan Lee's slideshow presentation:

Be sure to click here for other presentations from the Value Investing Congress.

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