“It’s a relief that Samsung Electronics won’t sell”…Recapturing ‘No. 1 Memory Market’ Over SK Hynix

It’s the title of an article in Mail Business.

Despite my near-cursive criticism of Samsung Electronics over the past few years, people who didn’t sell Samsung Electronics shares will laugh at me when they don’t have an eye for stocks, saying, “It’s only a good thing that Samsung Electronics won’t sell.”

So, is it really a good thing I didn’t sell it?

I think I introduced it a while ago, but if you go to Naver Securities page, there is a page called “What if you bought it then?”

If I choose the day I want, I can see at a glance how the stock price has changed since that day and what the rate of return is.

If you bought Samsung Electronics in early January this year and held it until now, the return would have been 77 percent.

If you sold Samsung Electronics and bought SK Hynix, your company’s profit margin would have been 135%.

Then, it’s the arithmetic area of whether it’s better not to sell Samsung Electronics and hold it, or to buy SK Hynix, so each person should decide.

Naver made it possible to watch it for up to five years.

If you bought Samsung Electronics five years ago today and have held it until now, the rate of return is 62%.

In other words, it has not risen at all in the past five years, but it has only risen this year.

Then, if you bought SK Hynix five years ago today and held it until now, what would be the rate of return?

It’s 405 percent. It’s more than six times that of Samsung Electronics.

That’s why I’m telling you not to look at our economic papers. I don’t think you think you’re stupid.

Snake Feet:

As the article says, it is true that Samsung Electronics regained the top spot in the memory market in the third quarter.

But this is about adding both DRAM and NAND, and SK Hynix is still No. 1 if you look at DRAM that includes HBM.

Originally, Samsung Electronics was a strong field, but due to the recent increase in prices, it ranked No. 1 in the overall market.

The problem is that NAND is cheap and has not a lot of margins, and there are many competitors. That means there is not much left even if you sell a lot.

Instead, DRAM is relatively expensive, and HBM is especially good in margins. It keeps losing ground to SK Hynix here.

This is why Samsung Electronics’ operating profit ratio in the third quarter is less than half that of SK Hynix.

Snake Feet 2:

But that doesn’t mean we should sell Samsung Electronics and buy SK Hynix now.

I know a little about the two companies, but I know little about how they are linked to stock prices.

That’s why I don’t buy individual stocks and just buy ETFs that follow the KOSPI index and bury them.

I hope this country does well and I hope it does well.