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Technology Stocks : SKM, S.K. Telecom, nyse, depressed buy, w/close stop -- Ignore unavailable to you. Want to Upgrade?

To: Brett Nelson who wrote (73)	1/12/1998 6:04:00 PM
From: Jyoti sharma	Respond to of 122

Brett, The premium is simply the difference in price eg Korean ADR price in Korea was 5320 won last week. Price here is based on the market's perception of the value in SKM. Korean ADR's have always traded on a premium here. The market is betting that the price of SKM will rise in Korea when limits on foreign ownership are removed. Right now foreign ownership of SKM in Korea is maximum allowed. On Dec 12 SKM sold 18.7 million share to some very savy investors at a premium of over 60% see: biz.yahoo.com Full opening of Korean markets will reduce the premium here to less than 10%. Markets are betting here that SKM price rise in Korea will more than make up for the premium now. I think the market's perception is correct. SKM is expected to grow > 25%. All bets are off if Korea can not solve it's problems quickly. IMHO a better buy may be KF trading at a premium of less than 30%. Jyoti