"Samsung and SK Hynix Not Undervalued"... Wall Street "Assassin" Targets Korea

Fahmi Quadir, founder of Safkhet Sentinel and a short-seller famously 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 efficiently priced stocks in Korea.

In other words, they are the stocks that reflect the Korea discount the least in the Korean stock market.

Quadir argued that the current stock prices of Samsung Electronics and SK Hynix are neither overvalued nor can they be considered undervalued by any means.

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 Nasdaq American Depositary Receipt (ADR) listing and the oversight that they are cyclical industries.

The Wall Street Journal previously reported, "Quadir, who has focused on short strategies betting on stock price declines, has singled out Korea as the stage for her first-ever long strategy, buying stocks expected to rise."

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 Korean companies."

Explaining that she is looking for companies with a price-to-book ratio (PBR) of under 1 that continuously generate cash, possess abundant net cash and physical assets, and hold a large amount of treasury shares, she added that she is also keeping an eye on companies where succession environments are changing due to shifts in the inheritance tax system.

Quadir also noted that while investing in small- and mid-cap stocks is risky, it also presents opportunities, believing that variables in small- and mid-cap stocks—such as transactions involving controlling shareholders and specially related parties—can be overcome through thorough investigation and analysis.

Quadir is an investor on Wall Street who tenaciously targets corporate weaknesses such as corruption, accounting fraud, and scams, having generated massive profits by shorting the global pharmaceutical firm Valeant and the German fintech company Wirecard.

In the latter half of this year, she will establish her first overseas office in Seoul to advance into Korea.

(Reported by Jung Da-eun, Video by Hong Jin-young, Design by Yang Hye-min, Produced by SBS Digital News)
※ Please note: This article was translated by AI and may contain errors.