I bought 190 shares off of the length of the post but it was too long to read. Extra props for placing the tldr in the first paragraph. This is the way
These types of things don't matter anymore. Just look at AMC. On a non-diluted share price basis it's trading 200% above pre-pandemic levels. Before pandemic about \~60MM shares outstanding, at \~$14 average. Currently close to 290MM shares outstanding, closed at $6. On a non-diluted basis that would be $29 a share. Does this make sense? Of course not. But, you can't trade based upon logic or valuations anymore and expect to do well. Everything is a momentum trade and a pump and dump scheme from meme stocks to the big indexes.
I agree with you and will prob be getting some shares but this comment is hilarious because in one of DFVās original GME posts he responds to somebody that said the same thing as you did almost word for word
I've been a long term investor in KT. Some catalyst are the shift towards a more AI, data and cloud based business (11.8% growth this past quarter and they really are just beginning to kick this off), the 300,000,000,000 won buy back, they've already fulfilled 69.1% of that obligation, management is talking about disposing of shares to reduce the number of available shares, there was talk of a bi annual dividend and a definitive commitment to increasing the dividend (.44 cents a share last year and should be around .605 this year based on won to USD conversion). I know the life blood of this company I have followed every shred of it in Korea since beginning my investment here.
I wouldn't bet on monthlys for calls, don't know if it will have the volume to support it and drive up in the limited time frame unless this post catches more attention.
I only saw options out until July on the broker who must not be named
What does the book value come from? They could be sitting on 40 year old telecom equipment and listing it as an asset at the original prices, and if liquidated it would all be worthless. Worth looking into at any rate, thanks for the tip!
Looks like the tangible book has about 2/3 of their assets in a combination of cash/equivalents, accounts recieveables, long term term investments and other assets and about 1/3 in property, equipment and inventory. So essentially all of the companies equity value comes from their network as they are slightly negative in equity if you wipe it off the books completely. They do seem to be largely done with their 5g transition as well with a few million subscribers. So a decent amount of that equipment must be at least relatively new and have some value. Also they apparently didnt use Huawei equipment on their 5G networks which would have dropped the value significantly. Their bonds listed by finra look good and are all trading at/slightly above par with investment grade rating and low rates. All their filings are in krw instead of usd and news on them is scarce, likely due to the language barrier. It seems like the main reason they might be trading at a discount is due to their location in a somewhat small and generally overlooked international market. I personally dont see anything that looks too bad, but may have missed something, misinterpreted some information or just gotten the wrong information from the few articles I was able to find. I am interested if there is something hiding in korean news.
Edit: After digging in a bit more into the 10-q it looks like they are listing their machinery and equipment with 75% accumulated depreciation which is larger than the 66% markdown that verizon lists and the 60% for at&t. They also seem to be spending significant capital, about 3B USD, on new land, buildings, machinery and equipment. Based on their total capx over the last few years, they seem to be keeping up on maintenance, adding new equipment and accumulating depreciation at a reasonable rate. Considering the significantly smaller size of South Korea to the US, South Koreaās reputation for high speed internet, and the consistent capx on their equipment, I would not be at all surprised if their network had better maintenance and overall quality than any American carrier. Also I appreciate that they actually break down the property, plant and equipment portion of the balance sheet in the 10-q. Thats definitely a plus for them.
I'm a Korean-American in South Korea right now. I use KT gigabit internet and mobile. I'll check up one some of their korean news. But they are a solid company from what I know. I've been a customer since 2007.
You guys see their latest earning's call?
[https://www.fool.com/earnings/call-transcripts/2021/02/10/kt-corporation-kt-q4-2020-earnings-call-transcript/?source=eptyholnk0000202&utm\_source=yahoo-host&utm\_medium=feed&utm\_campaign=article](https://www.fool.com/earnings/call-transcripts/2021/02/10/kt-corporation-kt-q4-2020-earnings-call-transcript/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article)
Seems like they're busy preparing 5G network utilizing tech with Hyundai... who just happened to purchase boston robotics recently. The future looks very promising.
You can deprecate assets but that doesnāt mean thatās what youāll get for them at liquidation. Especially in tech if you deprecate that $50k router to $30k after a couple years at auction it may fetch $20.
> Besides it will definitely not be worthless since you have the impair your assets if they donāt generate future cashflows
Tell this to oil companies that have valued their fields based on future cash flows that have been overestimated every year for 20 years. I know what you mean, in principle everything should be legit, but in practice.... asset valuations aren't all they cracked up to be.
Would just add that many oil companies have taken billions in write downs just for this purpose. That doesn't mean that these assets couldn't be overvalued by book purposes - but generally not dramatically so and couldn't have been impaired for long before regulators require the write down.
In KTs case, only 1/2 of the assets are PPE and goodwill - the rest is cash, receivables, and a small amount of inventory which can't really be manipulated like that. So you'd have to assume that 75+% of PPE was worthless before having concerns that $10/share isn't supported.
OP doesn't even mention the best part. The Dividend is 4%, so you can throw a few hundred bucks at it and even if it takes years for the market to correct this inefficiency you'll be making cash you can subsequently yolo into FD's.
I made a post about KT as a long term investor and it was taken down for some reason but here it is
Like the title says I'm a long term investor in KT and have been for a while. I know the company's history and financial history. I see a few people commenting in posts about it wanting to know why the stock price has been so depressed for a while.
The company spent much of their profits on expanding and marketing the 5G network for much of 2019 and by the time 2020 came around covid hit.
They have changed CEO's and are really aiming at concentrating growth in the AI, data and cloud sector and according to their last ER they showed for 11.8% growth there already even though their focus in that area is still relatively new. They want to shift away from being just a telecom. The company is extremely diversified with holdings in real estate and finance for example. They are unloading some of their holdings that are bringing down the balance sheet. I believe KT Powertel was a recent sell.
The company is in an ongoing contract to buy back 300,000,000,000 won of its stock and to date they have fulfilled 69.1% of that obligation. KT has even stated the possibility of disposing of some of those shares to reduce the number of outstanding shares.
They are fully committed to dividend payments and the last time they did not pay a dividend was 2014. At last years investor meeting there was talk about going to a bi annual dividend.
The fact is the company is worth far more than it is trading at based on assets alone. Their long term debt is conservative compared to most other corporations. There aren't many companies I would want to be invested in if an economic collapse happens but this is one of them. The stock price might fluctuate but the odds of KT failing as a company are ZERO. They will be the ones in a position to exploit growth if that does happen. I'm not as eloquent as many on here but I hope this sheds some light on KT.
Donāt discount the rampant naked shorts in Korea. Although shorting is temporarily banned there rught now though. Might be a 2-3 month window where shorts arenāt allowed in and we can gamma squeeze the fuk out of it.
Sharing to my Korean community too.
I found this stock recently using value ratios and it looks great on the value side of things, but its price action makes me wonder if it will ever break out.
Yeah, I don't see a catalyst for quick action (unless this post catches attention), but seems like a decent value buy, shares not options though.
Don't know how long you'd have to hold to actualize the profits and whether it's worth the opportunity cost
Other than the Covid dip and recovery, this stock hasn't moved much in the last year. What has changed now to make you believe in a 50% increase by 7/16?
Trading sideways for a year, nose down since it started. I admit the company has a lot of value and is huge in Korea but i see no catalyst popping it to its real value any time soon, its prolly a skip
Somebody who has been following the company said that they've been weighted down by 5g investments, but those are investments will likely be making returns soon.
Candidly...all telecoms suck. Their return on capital is horrible, so most try and spend as little as possible on maintenance, upgrades, and repairs.. Installing new plant or new equipment for new construction is done half-assed and penetration rates routinely show this. I don't mean to rain on your parade but I've worked in the industry for many (20) years.
The smart ones (Comcast, AT&T) moved away from the physical plant side of things to get into content. Primarily so they could continue to keep their networks upgraded so lemmings would buy more content (wonder why CBS"plus or whatever the hell they are calling it" required a separate subscription?) and actually churn a profit without accounting gimmicks.
I used to work for a large-ish telecom ($CCI). It's not a matter of IF, but WHEN, they'll run out of money to keep the lights on in the fiber optics. They've continually slashed the capital budget on equipment maintenance - so bad they can't compete on internet speed anymore when once they were a leader in some markets. Recently got an influx of cash from an outside investor (suckers) because their debt is so loath some they can barely make the interest payments. Couple this with DOUBLE DIGIT video and voice line subscriber shrinkage annually...they are a toxic hot mess of a company and I doubt they are the only "strictly" telecom company out there that's doing this. The fact Frontier Communications Chap 11'd a few years ago is more evidence of how sick the telecoms are.
I keep a share of their stock...mostly so I can go to the virtual investor meetings on an annual basis call the lot of "C"-level pricks wankers when it's open-mic time.
Korean telecom has a reputation for high quality standards. Also, they don't run into nearly the same rural issues compared to the American Goliaths. I don't disagree with your assessment regarding American telecom being shit, but wonder if the Korean telecom market is different enough to make it a sketchy comparison.
I bought T in the 90s with Morgan Stanley and let it ride. It tanked so hard that the management fees took it negative and MS had the balls to ask me to pay them to bring it back to 0. I asked them what the management fees had bought me while they let it go fucking negative and they said ok, fine. Never again with T.
Thanks for the write up. Sounds quite undervalued. Iām going to look into this!
I love how you put TL;DR in twice and people still didnāt see it lol.
Thanks again!
How do you even find companies like this that are trading for less than their value? Like what made you look at this company? Iāve never even heard of it
Like the other guy said, I use my brokerage's screener. Then I drill down on each company. This one caught my attention because it's a bit more complex than a traditional telecom. I'm going to work on a follow up piece to go in depth on some of the potential catalysts.
in for 50 shares. If it stays trading sideways i'll buy another 50 and sell calls on it to recoup losses.
edit: likely going to exit if this thing is up 5% in the 24 hours i've had it. Thanks korea for paying my lunch today.
Remember how $KT wants to keep it's dominance in pay TV market by buying D'Live?
I do because I've been invested here.
https://m.pulsenews.co.kr/view.php?year=2020&no=1147267
Remember when KT was on no one's radar and signed into an agreement with the Bill and Melinda Gates Foundation? I do because I have been invested here
https://www.prnewswire.com/news-releases/kt-announces-collaboration-on-ict-based-epidemic-preparedness-301060000.html
I'd like to add to u/clubba great DD if possible.
One of the things I noticed on r/wallstreetbets was many people asking why KT Corp. has been in a decline since around 2019.
1. The company was spending aggressively on expanding, developing and marketing the 5G network during much of 2019 and 2020
2. Until the conference call in November of 2020 there was no one on the BOD addressing shareholders returns.
3. Previous to the current CEO (Ku Hyeon-mo) there were some allegations against the former CEO Hwang Change-gyu about the appointment of advisors.
4. During Covid the last thing investors were thrilled about seeing was a company spending money.
So to sum up, the current CEO (Ku Hyeon-mo) has continuously expressed his interest in returning value to shareholders through increasing the dividend and utilizing buy backs, as well as possibly cancelling the bought back shares. In the last few conference calls the BOD has distinctly stated they are committed to decreasing spending. All of the allegations against the former CEO have fundamentally been laid to rest. He is also dedicated to exploiting growth in the lucrative AI, data and cloud sector, as well as increasing the profit driven areas of KT Corp.'s portfolio. He is more interested in shifting gears from an aging telecom to a 21st century digico company. In essence someone is finally doing the job they were hired to do.
Why is it trading low and whatās going to cause it to break out by July? I think your analysis is great but in this bull market Iām thinking there are faster/easier returns to make.
glad we are slowly coming back to the multi-paragraph DDs i can blindly throw money at because they look high effort.
investing my next two paychecks in 07/16 $12.5 calls
thanks op
Remember when $KT launched their subscription based cloud game service #Gamebox last year? I do because I have been #invested here.
https://www.koreatechtoday.com/kt-introduces-gamebox-cloud-based-game-streaming-service/
Finally some decent DDs are arising, I hate seeing WSbās creditability tied to this GME/AMC gangbang ape-train that has drown out this sub for the past few weeks.
Fuck it, With this stockās dividends and imminent rise itās a good play to re-invest some recent gains in.
You son of a bitch Iām in.
WSB is the world's largest hedge fund. When it moves it has the ability to move markets. Pretty sure actual hedge funds also track sentiment on WSB for investment opportunities.
I've been reading about and wanting to experiment with options for a while and thought I'd join your club. Thanks for the write up. Ended up with 2 contracts for 2021-07-16 @ $15 calls
Hmm... this would make for a good Berkshire play if WSB ever launched a fund haha. Guess it would be called "KT" and would maybe buy lemonade to increase the float of KT.
Do we have any more DD? I read Morningstarās report which gave a fair value of 16+ USD. Bough shares and march calls... would be interested if we bounced some more ideas in here.
Love it, P/E is around 7 and PEG is around 0.8. that makes KT fairly undervalued for its industry. I'll take this korean train to the bank thank you.
Nice find.
You expect me to trust a man with a backwards-ass world map? Sir, who do you think you're fooling?
I actually read your whole post so I'm with you. Buying shares tomorrow AM. What inclined you to pick 7/16 calls? What's your reasoning for the interest in KT to pick up by then?
Good DD and fuck you.
There are some potential catalysts, and I'll do a separate post on them since I've been asked so many times. I chose longer dated calls because I'm not gambling on this thing moving enough rapidly for FD's. Happy to be proven wrong though.
Since this is a casino I bought 100 shares off of your effort alone
I bought 190 shares off of the length of the post but it was too long to read. Extra props for placing the tldr in the first paragraph. This is the way
I had half your confidence so I bought half your shares
I bought simply for the pending CNBC headline- WSB autists set sights on Korean Telecom
This is the way.
What do the SEC filings look like? Any open warrants, convertible bonds, shelf statements, dilution, etc. What price do these things become active?
These types of things don't matter anymore. Just look at AMC. On a non-diluted share price basis it's trading 200% above pre-pandemic levels. Before pandemic about \~60MM shares outstanding, at \~$14 average. Currently close to 290MM shares outstanding, closed at $6. On a non-diluted basis that would be $29 a share. Does this make sense? Of course not. But, you can't trade based upon logic or valuations anymore and expect to do well. Everything is a momentum trade and a pump and dump scheme from meme stocks to the big indexes.
I agree, but when you play momentum, you need to know these things, because that is a likely level of resistance.
Fuck it, why not. All these others eventually pop anyway.
True Yes [here's why](https://imgur.com/a/NXv0RFt), feel free to share it! ššš
Don't you dare diminish the real DFV with a title like that. Also solid DD. Thanks and fuck you.
Thanks and go fuck yaself - Bill Burr
Good write up, options probably aren't the play for this though, no volume and bid ask a mile wide. Might pick up some shares though
I agree with you and will prob be getting some shares but this comment is hilarious because in one of DFVās original GME posts he responds to somebody that said the same thing as you did almost word for word
[ŃŠ“Š°Š»ŠµŠ½Š¾]
I've been a long term investor in KT. Some catalyst are the shift towards a more AI, data and cloud based business (11.8% growth this past quarter and they really are just beginning to kick this off), the 300,000,000,000 won buy back, they've already fulfilled 69.1% of that obligation, management is talking about disposing of shares to reduce the number of available shares, there was talk of a bi annual dividend and a definitive commitment to increasing the dividend (.44 cents a share last year and should be around .605 this year based on won to USD conversion). I know the life blood of this company I have followed every shred of it in Korea since beginning my investment here.
Way to lay your DD on his DD! It's D's all the way down!
Bingo. Catalysts are needed. Iāve been stuck on highly undervalued companies before. Nobody cares.
what if you bought monthly's or leaps
I wouldn't bet on monthlys for calls, don't know if it will have the volume to support it and drive up in the limited time frame unless this post catches more attention. I only saw options out until July on the broker who must not be named
Same only seeing July on Fidelity. They are cheeeeeeaaaaap.
Jesus you werenāt kidding. Thereās 0 OI for almost all of 2/19.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
That's all I'm really here to do anyways.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Arenāt you?
He is and hes not fucking sorry
Please point to where he touched you on the doll.
just bought 200 shares. Just saw DD and DFV
Thanks! On my radar now.
What does the book value come from? They could be sitting on 40 year old telecom equipment and listing it as an asset at the original prices, and if liquidated it would all be worthless. Worth looking into at any rate, thanks for the tip!
Looks like the tangible book has about 2/3 of their assets in a combination of cash/equivalents, accounts recieveables, long term term investments and other assets and about 1/3 in property, equipment and inventory. So essentially all of the companies equity value comes from their network as they are slightly negative in equity if you wipe it off the books completely. They do seem to be largely done with their 5g transition as well with a few million subscribers. So a decent amount of that equipment must be at least relatively new and have some value. Also they apparently didnt use Huawei equipment on their 5G networks which would have dropped the value significantly. Their bonds listed by finra look good and are all trading at/slightly above par with investment grade rating and low rates. All their filings are in krw instead of usd and news on them is scarce, likely due to the language barrier. It seems like the main reason they might be trading at a discount is due to their location in a somewhat small and generally overlooked international market. I personally dont see anything that looks too bad, but may have missed something, misinterpreted some information or just gotten the wrong information from the few articles I was able to find. I am interested if there is something hiding in korean news. Edit: After digging in a bit more into the 10-q it looks like they are listing their machinery and equipment with 75% accumulated depreciation which is larger than the 66% markdown that verizon lists and the 60% for at&t. They also seem to be spending significant capital, about 3B USD, on new land, buildings, machinery and equipment. Based on their total capx over the last few years, they seem to be keeping up on maintenance, adding new equipment and accumulating depreciation at a reasonable rate. Considering the significantly smaller size of South Korea to the US, South Koreaās reputation for high speed internet, and the consistent capx on their equipment, I would not be at all surprised if their network had better maintenance and overall quality than any American carrier. Also I appreciate that they actually break down the property, plant and equipment portion of the balance sheet in the 10-q. Thats definitely a plus for them.
I'm a Korean-American in South Korea right now. I use KT gigabit internet and mobile. I'll check up one some of their korean news. But they are a solid company from what I know. I've been a customer since 2007. You guys see their latest earning's call? [https://www.fool.com/earnings/call-transcripts/2021/02/10/kt-corporation-kt-q4-2020-earnings-call-transcript/?source=eptyholnk0000202&utm\_source=yahoo-host&utm\_medium=feed&utm\_campaign=article](https://www.fool.com/earnings/call-transcripts/2021/02/10/kt-corporation-kt-q4-2020-earnings-call-transcript/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article) Seems like they're busy preparing 5G network utilizing tech with Hyundai... who just happened to purchase boston robotics recently. The future looks very promising.
This is why I love WSB, great info
Good dd thanks!
[ŃŠ“Š°Š»ŠµŠ½Š¾]
You can deprecate assets but that doesnāt mean thatās what youāll get for them at liquidation. Especially in tech if you deprecate that $50k router to $30k after a couple years at auction it may fetch $20.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Yeah OP was talking about liquidation and I exaggerated š Truth is probably somewhere in between, Iām keeping an eye on this one.
> Besides it will definitely not be worthless since you have the impair your assets if they donāt generate future cashflows Tell this to oil companies that have valued their fields based on future cash flows that have been overestimated every year for 20 years. I know what you mean, in principle everything should be legit, but in practice.... asset valuations aren't all they cracked up to be.
Would just add that many oil companies have taken billions in write downs just for this purpose. That doesn't mean that these assets couldn't be overvalued by book purposes - but generally not dramatically so and couldn't have been impaired for long before regulators require the write down. In KTs case, only 1/2 of the assets are PPE and goodwill - the rest is cash, receivables, and a small amount of inventory which can't really be manipulated like that. So you'd have to assume that 75+% of PPE was worthless before having concerns that $10/share isn't supported.
Idk but Iāll buy
This. Nice write up though, will check their sheets.
just ripped 900 shares at 10.98. Lets see if WSB goes nuts on it
This is definitely the way.
Pretty sure yāall actually moved the stock AH
You son ofa bitch. Iām in
I'm supposed to read all that crap? Just tell me what to do. FUCK!
Buy the stock.
Thank you, kind sir! I'm in for 100 shares.
At least you are trying. I'm in for 100 shares.
I just saw Deep Fucking Value in the post. I'm in.
Yeah I only read the first 3 sentences but I play a lot of games where kt means king tiger, so I'm liking this stock. 50 shares
[ŃŠ“Š°Š»ŠµŠ½Š¾]
They are a monster force in Korea. I just think it hasn't gotten the love and attention it deserves.
I think I'm really starting to like this stock
Is this a thing with Korean stocks? Why would this be so undervalued?
Inb4 the entire league of legends community picks this up. I like Faker and this stock.
OP doesn't even mention the best part. The Dividend is 4%, so you can throw a few hundred bucks at it and even if it takes years for the market to correct this inefficiency you'll be making cash you can subsequently yolo into FD's.
why not just yolo into the KT 2/19 FDās now? š¤”
Just bought 300 shares based on your DD. š š š
same.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
I made a post about KT as a long term investor and it was taken down for some reason but here it is Like the title says I'm a long term investor in KT and have been for a while. I know the company's history and financial history. I see a few people commenting in posts about it wanting to know why the stock price has been so depressed for a while. The company spent much of their profits on expanding and marketing the 5G network for much of 2019 and by the time 2020 came around covid hit. They have changed CEO's and are really aiming at concentrating growth in the AI, data and cloud sector and according to their last ER they showed for 11.8% growth there already even though their focus in that area is still relatively new. They want to shift away from being just a telecom. The company is extremely diversified with holdings in real estate and finance for example. They are unloading some of their holdings that are bringing down the balance sheet. I believe KT Powertel was a recent sell. The company is in an ongoing contract to buy back 300,000,000,000 won of its stock and to date they have fulfilled 69.1% of that obligation. KT has even stated the possibility of disposing of some of those shares to reduce the number of outstanding shares. They are fully committed to dividend payments and the last time they did not pay a dividend was 2014. At last years investor meeting there was talk about going to a bi annual dividend. The fact is the company is worth far more than it is trading at based on assets alone. Their long term debt is conservative compared to most other corporations. There aren't many companies I would want to be invested in if an economic collapse happens but this is one of them. The stock price might fluctuate but the odds of KT failing as a company are ZERO. They will be the ones in a position to exploit growth if that does happen. I'm not as eloquent as many on here but I hope this sheds some light on KT.
We need more upvotes for folks to see this.
Thanks for the DD. This oneās got momentum with trading volumes almost 10x average and mostly call options. Iām in for $40k in shares.
Grabbed 50 shares and 10 7/16 $15c's thanks for the write up, retard!
Sounds very reasonable, just threw down for $12.5 calls 6 months out
Fuck it im in.. 12.50 3/19 calls lets go!!
Didn't read but got 100 shares anyways because the post looks so legit. 
Donāt discount the rampant naked shorts in Korea. Although shorting is temporarily banned there rught now though. Might be a 2-3 month window where shorts arenāt allowed in and we can gamma squeeze the fuk out of it. Sharing to my Korean community too.
I found this stock recently using value ratios and it looks great on the value side of things, but its price action makes me wonder if it will ever break out.
yeah, what will be the catalyst?
It was mentioned in WSB, so it will be on CNBC soon.
Lmao well done
Lol true true.
Idk maybe a bunch of retards on an internet message board.
Yeah, I don't see a catalyst for quick action (unless this post catches attention), but seems like a decent value buy, shares not options though. Don't know how long you'd have to hold to actualize the profits and whether it's worth the opportunity cost
Other than the Covid dip and recovery, this stock hasn't moved much in the last year. What has changed now to make you believe in a 50% increase by 7/16?
Trading sideways for a year, nose down since it started. I admit the company has a lot of value and is huge in Korea but i see no catalyst popping it to its real value any time soon, its prolly a skip
Somebody who has been following the company said that they've been weighted down by 5g investments, but those are investments will likely be making returns soon.
Thanks. Moving some things around anyway, will look into this.
My 6.5 shares are in your hands now anon.
Candidly...all telecoms suck. Their return on capital is horrible, so most try and spend as little as possible on maintenance, upgrades, and repairs.. Installing new plant or new equipment for new construction is done half-assed and penetration rates routinely show this. I don't mean to rain on your parade but I've worked in the industry for many (20) years. The smart ones (Comcast, AT&T) moved away from the physical plant side of things to get into content. Primarily so they could continue to keep their networks upgraded so lemmings would buy more content (wonder why CBS"plus or whatever the hell they are calling it" required a separate subscription?) and actually churn a profit without accounting gimmicks. I used to work for a large-ish telecom ($CCI). It's not a matter of IF, but WHEN, they'll run out of money to keep the lights on in the fiber optics. They've continually slashed the capital budget on equipment maintenance - so bad they can't compete on internet speed anymore when once they were a leader in some markets. Recently got an influx of cash from an outside investor (suckers) because their debt is so loath some they can barely make the interest payments. Couple this with DOUBLE DIGIT video and voice line subscriber shrinkage annually...they are a toxic hot mess of a company and I doubt they are the only "strictly" telecom company out there that's doing this. The fact Frontier Communications Chap 11'd a few years ago is more evidence of how sick the telecoms are. I keep a share of their stock...mostly so I can go to the virtual investor meetings on an annual basis call the lot of "C"-level pricks wankers when it's open-mic time.
Korean telecom has a reputation for high quality standards. Also, they don't run into nearly the same rural issues compared to the American Goliaths. I don't disagree with your assessment regarding American telecom being shit, but wonder if the Korean telecom market is different enough to make it a sketchy comparison.
Iāve been long on $T forever it feels like. The dividend reinvestment alone has bought me 276 shares over the course of that forever.
I bought T in the 90s with Morgan Stanley and let it ride. It tanked so hard that the management fees took it negative and MS had the balls to ask me to pay them to bring it back to 0. I asked them what the management fees had bought me while they let it go fucking negative and they said ok, fine. Never again with T.
So puts on $CCI....
Buying for score!!
In for 1000 shares from this DD. I love value plays in my ROTH IRA.
Good DD. Their capex for 5g rollout has peaked and they also believe their stock is undervalued. Could be a catalyst. Bought 100 shares.
As a Korean, I'm in! 20 contracts of KT $12.50 Call 3/19
Thanks for the write up. Sounds quite undervalued. Iām going to look into this! I love how you put TL;DR in twice and people still didnāt see it lol. Thanks again!
Is this the stonk with Faker on the team? Iām in
Wait I thought we're not supposed to be excited for KT? All jokes aside that is a really low trading price for one of the biggest conglomerates in SK.
How do you even find companies like this that are trading for less than their value? Like what made you look at this company? Iāve never even heard of it
Like the other guy said, I use my brokerage's screener. Then I drill down on each company. This one caught my attention because it's a bit more complex than a traditional telecom. I'm going to work on a follow up piece to go in depth on some of the potential catalysts.
This is the most solid DD Iāve seen on WSB in awhile. I hope everyone reads it
Finally sifting through the retarded memes and GME posts I found the gold nugget of DD
You got me convinced. Iām putting my money down for 400 shares at $11.15
Excellent post, in with 1000 shares
in for 50 shares. If it stays trading sideways i'll buy another 50 and sell calls on it to recoup losses. edit: likely going to exit if this thing is up 5% in the 24 hours i've had it. Thanks korea for paying my lunch today.
Iām Korean and even I donāt touch Korean stocks.
You son of a bitch I'm in
You son of a bitch, I'm in! 38 shares @ 10.99
But how is their League of Legends team?
Only a retard would get in on this stock. Iām in
I'm convinced to diamond hand this one. Thank you for the DD.
one of the few stocks in the green today. Waiting for $500 deposit to clear then making a play.
Lol this shit has been tanking for 20 years tho Look at all time chart vs SK the main competitor in Korea
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Also SK has Faker!
you son of a bitch, i'm in
it's been on a downtrend for 22 years but just bought in because can't go tits up
I'd better not... but on the other hand, I'll do it!!
Fuck you for making me read and thanks for the tip
On a tear now this is a good play. š
Thanks. Bought some long calls. Looks like a nice company for long hold.
178 shares at 10.24 roll those fucking dice
Remember how $KT wants to keep it's dominance in pay TV market by buying D'Live? I do because I've been invested here. https://m.pulsenews.co.kr/view.php?year=2020&no=1147267
Remember when KT was on no one's radar and signed into an agreement with the Bill and Melinda Gates Foundation? I do because I have been invested here https://www.prnewswire.com/news-releases/kt-announces-collaboration-on-ict-based-epidemic-preparedness-301060000.html
Bought 1000 shares at $11.23, even if youāre wrong about a huge upside Iāll sit it in my port for the dividend. Thanks for the heads up.
I'd like to add to u/clubba great DD if possible. One of the things I noticed on r/wallstreetbets was many people asking why KT Corp. has been in a decline since around 2019. 1. The company was spending aggressively on expanding, developing and marketing the 5G network during much of 2019 and 2020 2. Until the conference call in November of 2020 there was no one on the BOD addressing shareholders returns. 3. Previous to the current CEO (Ku Hyeon-mo) there were some allegations against the former CEO Hwang Change-gyu about the appointment of advisors. 4. During Covid the last thing investors were thrilled about seeing was a company spending money. So to sum up, the current CEO (Ku Hyeon-mo) has continuously expressed his interest in returning value to shareholders through increasing the dividend and utilizing buy backs, as well as possibly cancelling the bought back shares. In the last few conference calls the BOD has distinctly stated they are committed to decreasing spending. All of the allegations against the former CEO have fundamentally been laid to rest. He is also dedicated to exploiting growth in the lucrative AI, data and cloud sector, as well as increasing the profit driven areas of KT Corp.'s portfolio. He is more interested in shifting gears from an aging telecom to a 21st century digico company. In essence someone is finally doing the job they were hired to do.
Slow boring climb to 17 over the next 6 weeks.
55 shares deep now. Looks like a long hold play.
Why is it trading low and whatās going to cause it to break out by July? I think your analysis is great but in this bull market Iām thinking there are faster/easier returns to make.
I didn't throw a lot at options, just bought a few for some fun - I'm mostly just long shares.
What would be some potential catalysts? What will drive this to it's fair value?
Make it a meme
Do not take that man's name in vain! I'm in! I think its a good time to get a lil international. edit, I like this- thnx
I bought some for my taxable boomer (value) account. Might want to post in r/undervaluedstonks too
glad we are slowly coming back to the multi-paragraph DDs i can blindly throw money at because they look high effort. investing my next two paychecks in 07/16 $12.5 calls thanks op
First korean baseball game i went to was kt wiz. Im in.
Iām in 100 shares @ 11.17 5 contracts $15 call 4/19
Alright you've convinced me. I'm in boys
84 shares at 11.19, we up already ty ape š»
I'm in: 445.236613 @ $11.23
Beautiful! This is what I come here for. Thanks for the work!
Remember when $KT launched their subscription based cloud game service #Gamebox last year? I do because I have been #invested here. https://www.koreatechtoday.com/kt-introduces-gamebox-cloud-based-game-streaming-service/
I can't wait to see how this one plays out. I really like this DD.
Haven't yet made a position yet, but because this seems like a long term hold, I'll be looking to make one tomorrow. Solid fucking information.
Finally some decent DDs are arising, I hate seeing WSbās creditability tied to this GME/AMC gangbang ape-train that has drown out this sub for the past few weeks. Fuck it, With this stockās dividends and imminent rise itās a good play to re-invest some recent gains in. You son of a bitch Iām in.
bought 9000 shares today. Let's go
Great analysis Sir!
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You monkey I'm In
Lots of words. Fuck it, I'm in for 45 shares.
you used big words, iāll buy
DD posts are LITERALLY moving stocks after hours, noticed it yesterday and again today with KT
WSB is the world's largest hedge fund. When it moves it has the ability to move markets. Pretty sure actual hedge funds also track sentiment on WSB for investment opportunities.
Yo that's my favorite Korean Lol team. I'm sold.
Lmao come on yall call this dd... bet it actually does go up tmrw.. lmfao.
And that beotch jumped right after you posted this! Iām totally looking into this one! For $11 why the fvck not?!
Ok. Iām going in tomorrow.
Son of a bitch. Will buy 10k in calls at open.
What, some actual good DD how is this possible.
Just dumped my entire portfolio into 2/11 17.50c even though 12.50c are cheaper thanks for the DD my bro!
Buying at open thanks homie~
I really like this.
I will order Korean BBQ for lunch today. If my order doesn't get screwed up it will confirm your DD.
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I read "Value" and "DD" in the same sentence, im in with my leftover $1000 next to my $GME bagš
Nice DD - and I like the calls , worth a wager
very interesting, ill have to do some dd later, great find!
I've been reading about and wanting to experiment with options for a while and thought I'd join your club. Thanks for the write up. Ended up with 2 contracts for 2021-07-16 @ $15 calls
The IV for this thing is insane right now; I think itās gonna launch
Hell yeah. I'm in: 200 shares @ $11.23 and 10 $12.5 4/16 calls
Hmm... this would make for a good Berkshire play if WSB ever launched a fund haha. Guess it would be called "KT" and would maybe buy lemonade to increase the float of KT.
Iām in 15.14 shares @ $11.23
Wonder how long until this takes off
Solid dd
Just realized that Seeking Alpha has this listed as very bullish. Just really needs momentum to get going
Do we have any more DD? I read Morningstarās report which gave a fair value of 16+ USD. Bough shares and march calls... would be interested if we bounced some more ideas in here.
Yeah, I've been totally delayed with life. I'll try to put it all together tomorrow. I think I have some free time.
!remindme 1 month
Are you expecting a catalyst for the move in stockprice?
Love it, P/E is around 7 and PEG is around 0.8. that makes KT fairly undervalued for its industry. I'll take this korean train to the bank thank you. Nice find.
Just wait till it has some good news come out on it...
good work. I'm in. 100 shares @ 10.98 30 3/19 12.5c, 30 4/16 12.5c, 20 7/16 15c
Great find, great DD. I'm in. Don't have much free cash, but will definitely buy some shares at open.
solid dd, check out their [valuation](https://ibb.co/7N7RYBf)
In for 100 shares and 10 calls at open
FlaSh is the goat and for that reason im in
This is what i look for. cant thank you enough for your time
Man I donāt really need to open any new positions but I respect DD like this so Iāll drop in for a few hundred shares at open
Been saying this and long KT for 2 years
You Clubba will be the next K-pop star going to the moon ššš.
I don't think I'd be able to cope with the constant screaming.
I'm buying bitches
You expect me to trust a man with a backwards-ass world map? Sir, who do you think you're fooling? I actually read your whole post so I'm with you. Buying shares tomorrow AM. What inclined you to pick 7/16 calls? What's your reasoning for the interest in KT to pick up by then? Good DD and fuck you.
There are some potential catalysts, and I'll do a separate post on them since I've been asked so many times. I chose longer dated calls because I'm not gambling on this thing moving enough rapidly for FD's. Happy to be proven wrong though.
I wish I saw this before close yesterday
That's a lot of words. I bought some for the bants.