When I read the news that the jury awarded compensation of $1 billion to Samsung for the copyright case, I was shocked.
However, the following news report sounded quite optimistic
http://www.todayonline.com/Technology/EDC120825-0000066/Samsungs-defeat-could-actually-help-raise-its-brand
A few analysts had shared the same view. But I was not convinced. It seemed too optimistic.
My instinct turned out to be correct when the share price of Samsung dropped by 7.5% in Seoul on the first day of trading. It seemed that the shareholders are quite worried about the impact on Samsung.
http://www.todayonline.com/Business/EDC120828-0000029/Samsung-shares-plunge-on-fear-of-US-sales-ban
Yes. it is difficult to trade in shares and to interpret the news. It is also difficult to know which analyst to believe and not to believe.
Now, here is the million dollar question. Should you buy Samsung now, when it has dropped 7.5%?
However, the following news report sounded quite optimistic
http://www.todayonline.com/Technology/EDC120825-0000066/Samsungs-defeat-could-actually-help-raise-its-brand
A few analysts had shared the same view. But I was not convinced. It seemed too optimistic.
My instinct turned out to be correct when the share price of Samsung dropped by 7.5% in Seoul on the first day of trading. It seemed that the shareholders are quite worried about the impact on Samsung.
http://www.todayonline.com/Business/EDC120828-0000029/Samsung-shares-plunge-on-fear-of-US-sales-ban
Yes. it is difficult to trade in shares and to interpret the news. It is also difficult to know which analyst to believe and not to believe.
Now, here is the million dollar question. Should you buy Samsung now, when it has dropped 7.5%?
6 comments:
Some consideration when buying any shares:
a) Has the price dropped to the extent that the dividend yield has gone up?
b) Will the price bounce above 7.5% in the next quarter or more?
c) What is the growth potential?
So, it depends on risk appetites.
Forecast same as horse racing.
"Should you buy Samsung now, when it has dropped 7.5%?"
Well value and fundamental investors.
What is the fundamental value of Samsung?
Did your fundamental value analysis factor in the massive legal liabilities?
What about the impact on Google?
In the last 4 weeks before the verdict.
Apple's share price kept making a new weekly high at every Friday close.
Opposite was true for Samsung.
Did smart people anticipate the legal decision?
Could retail investors use technical analysis to follow the smart money?
[Apple-Samsung patent verdict: Expert opinions]
http://www.bbc.com/news/technology-19391235
The China Post editorial
[Trial win may mark watershed moment in Apple's downfall]
"Some makers from the Android camp are already churning out devices with sleek features such as smartphone with image projection hardware, and Internet TV with voice and hand-gesture control.
The technology giant.. should remember that its real strength is in creating a new way of life for the future generation, not just making big-sellers."
http://www.chinapost.com.tw/editorial/world-issues/2012/08/28/352443/Trial-win.htm
Samsung won the legal battle in Korea but not so lucky in The US. Apple won the lagal battle in The US but not so lucky in Korea.
Same case but two different results and juries said they rae impartial.
This remind me of DBS's HN5 in Hong Kong and Sinagpore.
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