Korean Job Discussion Forums

[Caro wack]

I have been back a few weeks. Talk about the exchange
rate is all my amigos discuss. It is grim. A small move to the
good today does little to offset the pain. Korea is not a place
you want to stay five minutes longer that you have to. Years ago
I was the first here to propose that ALL English classes in South
Korea be taught within fifteen minutes of Incheon Airport. We are
here to make a few bucks and get out alive.

That established, the way to make money presently is thus: Stop by a Samsung Securities branch (they are like poop in the woods in Seoul, everywhere.) Ask for the necessary forms to open a stock trading account. Five years ago you could buy shares same day, now there is a "process". Then, during the next 12 months, start buying shares of 2 or three stocks whose share price will approximate the overall eventual rise
in the KOSPI. One I happen to like now is ASIANA AIR LINES. Jim
Rogers is high on it too. It is way down near 3,000 won a share. NK is
threatening to shoot planes. It was over 8,000 won in recent memory. Pent up travel demand in 2010/11, and their own improved recession -induced efficiency will see this monkey eventually shoot up. You will win twice: rising share price, strengthening currency (having bought your shares at the won's ebb.) Thank me later.

[Xuanzang]

If I were little Jong, that's the first thing I would take out.

[Jane]

Someone told me yesterday that Asiana has fallen on hard times.

Not sure how eager I'd be to be a part owner of the company.

However, fellow-Minervae, keep the stock recommendations a-comin'!

[marlow]

Buffet bought into POSCO. Said it's a deal.

[Jane]

What I didn't mention in my last post is that airlines are -- in my opinion -- unwise investments. Why? First, they are sensitive to business cycles and susceptible to volatility in commodity prices. Also, airlines require in most cases intensive capital investment and ongoing maintenance, and all these factors eat into your profits.

I'll pass, thanks.

[Rusty Shackleford]

[Jane]

[bogey666]

[Jane]

For airlines who didn't hedge against increases in oil prices, in addition to inflation effects, other increases in commodities, I think the increased fares reflect well the additional expense.

Recently, I read this article, where this women claimed it cost her $500 to fly from NY to Paris last year. She also says, fifteen years ago, the same ticket cost her $500.

Because of stiff competition, airlines in general, strain to make even a modest profit.

[Otherside]

I agree airlines about airlines being a poor investment, and about what XXX said regarding the profitibility of the industry as a whole. I believe that the government subsidies are actually a cause of this problem. (Allowing uncompetitive airlines to offer competitive pricing, thus pressuring the other airlines etc.).

However, I agree with the OPs idea in theory. Buy into stocks in Korea, but rather than cherry picking "2 or 3 stocks whose share price will approximate the overall eventual rise in the KOSPI" just buy an index fund.

Both the won and the KOSPI are victims in this financial crisis and by buying into stocks in Korea you have the chance to make a good 75% return (assuming currency appreciates back to 1000 won levels and the KOSPI rises 20%), though a more reasonable return of 25-40% is to be expected in the short term. When contrasted to your 2 other options of A. sending money home now ...at W1500/1, you KNOW you are taking a big loss, the question is how big (i.e. what will the won recover to). or B. Waiting it out and earning 5% or less in a MMF.

[aquaponics08]

In the 1997 crash, it took until the August of 1998 to bottom out. The crash hasn't even started yet for real yet. Wait at least 1-1 1/2 years until the market starts to bottom.