Fahmi Quadir, founder of Safkhet Sentinel and a short seller dubbed an "assassin" on New York's Wall Street, has stated that Samsung Electronics and SK Hynix are not undervalued.
In an interview with a domestic media outlet, Quadir stated that the two companies are the most thoroughly analyzed and most efficiently priced stocks in Korea.
In other words, they are the stocks that least reflect the Korea discount in the South Korean stock market.
At the same time, Quadir argued that the current stock prices of Samsung Electronics and SK Hynix are neither overvalued nor can they be considered undervalued.
As for why the two companies have experienced sharper recent corrections than global semiconductor peers like Micron and TSMC, she pointed to SK Hynix's listing of American Depositary Receipts on Nasdaq and the oversight of the fact that they belong to a cyclical industry.
Previously, The Wall Street Journal reported that "she, who has focused on short strategies of short-selling stocks anticipating price drops, has chosen Korea as the stage to execute long strategies of buying stocks expected to rise for the first time."
Quadir cited the "Korea discount" as the reason for entering the Korean market, stating, "I will apply my short-selling experience directly to investing in South Korean companies."
She explained that she is looking for companies with a price-to-book ratio (PBR) of under 1 that continuously generate cash, have abundant net cash and physical assets, and hold large amounts of treasury shares, while also keeping an eye on companies whose succession environments are changing due to shifts in the inheritance tax system.
Quadir also noted that while investing in small and medium-sized stocks is risky, it also presents opportunities, believing that variables such as transactions between controlling shareholders and specially related parties in small and medium-sized stocks can be overcome through thorough research and analysis.
Quadir is an investor on Wall Street who tenaciously attacks corporate weaknesses such as corruption, accounting fraud, and scams, having generated huge profits by shorting global pharmaceutical company Valeant and German fintech firm Wirecard.
In the second half of this year, she will establish her first overseas office in Seoul, expanding into South Korea.
(Reported by Jung Da-eun | Video by Hong Jin-young | Graphics by Yang Hye-min | Produced by SBS Digital News)
※
Copying, redistribution, and unauthorized use in AI training are strictly prohibited.