Pages

Tuesday, March 24, 2015

The Best Way to Invest in Samsung

One company that investors would like to invest in, but is very difficult to do, is Samsung, considered to be the largest technology company in the world. Its products are used by Apple (AAPL), Nokia (NOK), and Sony (SNE). The stock trades at 11.8 times trailing earnings.

If your broker has access to a German exchange, you can buy Samsung Electronics (SSU.DE) or through the London Exchange, you can also buy Samsung (BC94.L).

However, most Americans don't have this access. So another option is buying the Samsung (SSLNF) over-the-counter on the Pink Sheets. The problem with this is that it is very illiquid, with only about 500 shares traded per day on average.

However, there is one other way to get in on the Samsung stock. You can buy shares of the Korea Fund (KF), which owns a huge amount of Samsung, making up almost 20% of the portfolio. This closed end fund also owns several other Korean companies, such as Hyundai (HYMTF). So you also get some diversification, plus some liquidity.

You get one other bonus. The Korea Funds trades at a 10.5% discount to net asset value. The fund uses no leverage and has a price to earnings ratio of 4.5.

If you like interesting stocks list this, check out the free stock lists at WallStreetNewsNetwork.com.

Disclosure: Author owns AAPL.

By Stockerblog.com

No comments:

Post a Comment