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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: Don Green who wrote (59757)	11/2/2000 1:11:15 AM
From: Barry Grossman	Respond to of 93625

quote.bloomberg.com CJ Investment's Chung on Samsung Elect, Posco, Hyundai: Comment By Heejin Koo Seoul, Nov. 2 (Bloomberg) -- Chung Doo Sun, who manages 300 billion won ($264 million) in assets at CJ Investment Trust Co. in Seoul, comments on Samsung Electronics Co., Pohang Iron & Steel Co., and Korea's corporate reform efforts. The computer-laden Nasdaq Composite Index shed 1.1 percent, led by chip-related companies after Altera Corp., a U.S. semiconductor maker, said sales growth in the fourth quarter will be at the low end of the estimate it forecast last month. Morgan Stanley analyst Jay Deahna lowered his forecast for chip-industry capital spending next year by 30 percent. On Samsung Electronics' ties with Nasdaq, and its valuation: ``There is no doubt Samsung Electronics is undervalued. We're talking about a stock that, at above 400,000 won a share, analysts are still saying it was undervalued.'' Samsung Electronics rose 6,000 won, or 3.7 percent to 169,000 in recent trading. ``But right now, with so much earnings concerns, not specifically about Samsung Electronics, but about global chipmakers as a whole, we'll just have to wait until the worries die down. ``Samsung is closely tied with the Nasdaq because foreigners hold more than 50 percent of the company's shares and also because Samsung has emerged as the representative stock for Korea.'' ``Both local and foreign investors are sensitive to Nasdaq's movements in regards to trading on Samsung Electronics shares.'' On Samsung's patent-license agreement with Rambus Inc.: ``Samsung's agreement with Rambus is the norm. It's something that a chipmaker such as Samsung has to do to ensure a steady supply for technology and to ensure profitability and growth for the future.'' ``This is why I'm worried about Hyundai Electronics Industries Co. Hyundai Electronics is still wrangling with Rambus over patents. It just doesn't make sense if the company wishes to look toward the future.'' On Posco's decision not to raise its stake in PowerCom, the nation's largest high-speed telecommunications cable network: ``Pohang's forays into telecommunications and away from its core business of steelmaking has been disconcerting to some investors. ``I don't think it has abandoned its ambitions of jumping into the telecommunications business. It's going to increase its holding on PowerCom shares through SK Telecom Co., even if Posco does not directly participate in the next PowerCom stake sale.'' ``Posco's sale of its stake in Shinsegi Telecom to SK Telecom has only increased Posco's will to venture into the telecom business, because it now holds a (6.5 percent) stake in SK Telecom.'' On creditors' blacklist of non-viable companies: ``I don't have high expectation concerning the list. Dong-Ah Construction Industrial Co. has already declared bankrupt, local media have said companies such as Ssangyong Cement Industrial Co. won't be included in the list. I don't think we're in for any surprises.'' On Hyundai Engineering & Construction Co.'s debt: ``It won't be easy to place Hyundai Engineering under court receivership. It will create a huge hole in the local construction industry, coming so soon after Dong-Ah's demise. If Hyundai Engineering also closes, it will be like getting rid of two big brothers in the industry at the same time. ``It is not easy to dismiss Hyundai Engineering's importance in the Korean industry. It's the No. 1 company in a sector that makes up nearly 9 percent of the nation's GDP. The impact of a possible closure will hit the industry very hard.'' ``Hyundai Engineering and its founding members will have to come up with strong self-rescue plans, if it plans to survive. ``There's still the problem of non-banking institution creditors, that operate short-term loans -- they want their money back, and soon. I think there's a 50-50 chance it will be included on the creditors' blacklist.'' On Strategy: ``I now have about 50 percent of my assets in equities but plan to increase the level to 65 percent in the next few weeks. ``I'm looking at telecommunications-related stocks such as Korea Telecom Corp. and SK Telecom. Telecom-related products have become a necessity for every-day life and its demand will continue to grow. ``Some investors are concerned about their future expenditure on developing the (new high-speed Internet access) IMT-2000 mobile phone service, but I think the companies will be able to absorb the costs in several stages, not all at once. ``I'm also looking at Posco because its share prices have fallen too much recently and also at Korea Electric Power Corp. because the company will be a steady gainer in the long run. ``I already have 15 percent of my assets in Samsung Electronics' ordinary and preferred shares and do not plan to increase the stake any time soon.''