We have been pounding the table on Samsung as the Apple (
) of the emerging world for awhile now. But the easiest way for
U.S. traders to get into this story seems to be running low on
[caption id="attachment_56209" align="alignright" width="220"
caption="Vertical growth in Wangsimini, Seoul"]
The MSCI Korea ETF (
) is up nearly 16% year to date, largely on the
strength of Samsung
-- not to mention the general sense that this is a company
that belongs in the same global elite bracket as Apple.
Samsung shares are up well over 23% over the same time period.
The company has vast cash reserves, almost endless corporate
partnerships and a toehold in practically every consumer
Like Apple, Samsung arguably has a better credit rating than the
country it inhabits. Apple has no long-term debt so it has no
hypothetical bonds for the agencies to rate, but Samsung just
launched a big bond offering at lower yields than the 3.5% to 4%
that Seoul pays.
A note of warning, however. While Samsung may still look strong,
institutional money has apparently started pumping back out of EWY.
Net flows from the fund
reached $52.5 million two weeks ago as investors redeemed 850,000
shares -- 1.5% of the entire portfolio.
If it continues, that kind of selling pressure may drag on
Samsung as well as more humble shares within EWY. That, in turn,
may present a buying opportunity.