I have become interested in Korea, since I believe the whole SouthAsian crash has been overhyped. Korea, like Malaysia and others, should be viewed as cheap technology stocks, since they are countries that export lots of technology. This will not change. My suggestion for all those out there is to buy the stocks rather than the closed end funds, which I believe now trade at huge premiums. My two suggestions are to buy KEP, which has a monopoly on electric power, and Pohang Iron and Steel (PKX), which is the largest steel producer in Asia. PKX is a solid long term investment, because Asia consumes 55% of all the stell produced in the country. Also, with the currency collapse, it will only continue to do well with exports. I like KEP, which now has about a 4% dividend and is down from a high of 22.
P.S. To find out the current NAVs of closed end mutual funds, look at the weekly Barrons, which lists those funds and their premiums and discounts. |
