Author Topic: Buy Samsung now?  (Read 2404 times)

Sjalabais

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Buy Samsung now?
« on: October 11, 2016, 02:12:37 AM »
Just today, Samsung's stock fell by 8% because of the Galaxy Note 7's fire troubles. I'm surprised there was no Samsung topic on the front page yet, but wouldn't this be an excellent time to jump in? Samsung is the biggest player in the "rational market" (i.e. not Apple), and I struggle to see them go down like Nokia. Much rather, I expect them to handle it and walk out of their troubles with better products - and more customers. Any chance for direct investments in Samsung?

MustacheAndaHalf

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Re: Buy Samsung now?
« Reply #1 on: October 11, 2016, 03:05:03 AM »
I looked up some data from Google Finance, and you seem to only be looking at 1 day of prices.  For the past 5 days Samsung stock is only down -3.7%, and for the past month, -1.33%.  If you're buying specifically on the drop, the monthly drop seems a bit small.

Consider also that Samsung is the #6 holding in Vanguard's Total International fund.  It's a very large publicly traded company in the world, and that means lots of experts tracking it's every move.  If there's an opportunity, ask yourself why did everyone else miss it?

After the fact, maybe you can point to lawsuits and see why the stock dropped more.  Or you can point to replacement products to explain why the stock will rise soon.  But you don't know for certain which outcome is more likely - a drop or rise.

2Cent

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Re: Buy Samsung now?
« Reply #2 on: October 11, 2016, 05:28:02 AM »
Seems like a good time to buy a cheap Note 7 though. :P

Sjalabais

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Re: Buy Samsung now?
« Reply #3 on: October 11, 2016, 08:47:50 AM »
This site remains a perfect reality check. Thanks!

GuitarStv

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Re: Buy Samsung now?
« Reply #4 on: October 11, 2016, 08:50:45 AM »
It's always a good day to buy Samsung (along with all the other stocks in your whole market fund).

moof

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Re: Buy Samsung now?
« Reply #5 on: October 11, 2016, 02:49:29 PM »
The track record of all but 2 companies who have gone into making cell phones have been awful.  For all we know Samsung and Apple will go the same way.

Nokia, Blackberry, Motorola, and so many smaller outfits have gone through various amounts of hype, failure, and ruin.  Many others never made it through the hype stage and went straight to the failure/ruin stage.

So if you want to bet on Samsung still being on the hype part of the curve with a momentary blip to buy on, go for it.  My luck is so bad that my only hope is to buy broad index funds to guarantee that if my bad luck bites me that I will take all you other suckers down with me (and the global economy).  Call it a suicide pact with Murphy's Law.

jamesbond007

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Re: Buy Samsung now?
« Reply #6 on: October 11, 2016, 04:49:39 PM »
Just today, Samsung's stock fell by 8% because of the Galaxy Note 7's fire troubles. I'm surprised there was no Samsung topic on the front page yet, but wouldn't this be an excellent time to jump in? Samsung is the biggest player in the "rational market" (i.e. not Apple), and I struggle to see them go down like Nokia. Much rather, I expect them to handle it and walk out of their troubles with better products - and more customers. Any chance for direct investments in Samsung?

I have a slightly different opinion on this. Note 7 is done. Some analysts out the damage at around close to $17B. It's crazy. The brand took a beating. So the upcoming Galaxy S8 is a tough sell for Samsung. At this time, in the short term, I'd rather buy Apple.

But I only buy Vanguard funds so this doesn't really apply to me. lol.

mjs111

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Re: Buy Samsung now?
« Reply #7 on: October 13, 2016, 09:34:30 AM »
Trading Samsung in the US is harder than it might appear, especially for a retail investor.  Samsung doesn't have ADR's that trade on an exchange here in the US like Baidu, Sony, or Toyota do. Samsung DOES have some shares that trade on the OTCBB under the ticker SSNLF.  The problem though is that bid/ask spreads are high and liquidity is almost non-existent. Last time I checked the average daily trading volume for SSNLF shares were just 90-100 shares a day:

http://www.otcmarkets.com/stock/SSNLF/quote

Fidelity and Schwab give you direct access to many foreign exchanges but neither give you access to the South Korean KOSPI exchange, where Samsung trades.

Mike


Vagabond76

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Re: Buy Samsung now?
« Reply #8 on: October 13, 2016, 09:57:45 AM »
Notwithstanding the advice above, one should always heed Baron Rothchild's advice:  "The time to buy is when there's blood in the streets."  Uncertainty drives prices down, sometimes irrationally, which breeds opportunity.

How will the Samsung situation shake out?  I have no idea and there is risk involved in every transaction.  However, smaller companies have weathered bigger storms.  BP blew up an oil rig, killed 11 people, and dumped nearly 5 million barrels of oil into the Gulf.  BP is still around and fared quite well until low prices took all oil companies down.

Ryo

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Re: Buy Samsung now?
« Reply #9 on: October 14, 2016, 03:44:05 AM »
Unlike, say, Apple, Samsung is a huge conglomerate with business interests in many disparate sectors, such as shipbuilding, financial services, automobiles, etc.  The Note 7 debacle is certainly damaging to their brand, but hardly a death spell for the company.