About Politic

OK! President Lee selected new prime minister "Kim" to support and promote for "the poor" policy. The new prime minister is expected to show a leadership based on communication and harmonization with creative visions.Lee tried to pursue to change urban development programs which moved government agencies into new city to a new proposal which attract companies to invest in the city. Why Lee changed the formal program proposed by formal president Roh? Because Lee thought it would be more effective in fueling regional development rather than moving government agencies. Formal prime minster failed to pursue the people who lives in the city to revise its development under Lee's favor, and Finally he decided to resign in the office. We got a new prime minster and he is young and more passion toward a lot of things that Formal prime mister has not completed yet!

Bye Bye Blockbuster!

Wow! Blockbuster which was the largest video rental firm was removed from NYSE and is trading on OTC. They lost market shares from Netflix. Netflix stock price is soaring over the years when Blockbuster stock was plunging. When I had a project about Video Rental Kiosk dominated by Redbox, Blockbuster tried to open its kiosk with Coinstar, but it did not work well and they closed stores and could not install its kiosks into Malls and retail stores where Redbox has already installed its kiosks over the years. Blockbuster faced a threat from Netflix which changed customers' tastes to renting DVDs through online. its Founder tried to sell his own shares at fire prices. Hey! Wattles! Don't run away from your business. You would better think about how to deal with this situation rather than running away from this!

LBO (leveraged Buyout)

Let me clear this term! In LBO, there is a ratio of 90% debt to 10% equity. Because of this high debt/equity ratio, its bonds are referred as JUNK BONDS. IF you need to know about the largest LBO which was the acquisition of HCA (Healthcare company). Kohlberg Kravis Roborts (KKR), Bain & Co and Merrill Lynch organized a group to make this deal and transaction. The three companies paid around $33 billion for the acquisition. HCA will be prepared for IPO in this year! Keep watching its move on IPO

Market volatility affects its earnings and Bank lending!

Although most of companies showed its high earning reports in this quarter, I am really concerned about the mounting debt of some states and cities such as Seoul, SeonNam and other states also. Investors should worry about sovereign risks.

WOW! KIA motors

Kia motors which is the affiliate of Hyundai motor posted an increase in quarter profit. I expected to increase values of KIA several years ago when the company was struggling with its growth. In 2008, Stock prices of Kia was around 8000 won (around $7.5) and traded its stock with the lower price. Why I argued that it was right time to buy Kia motors's shares due to replacing its top designer to Ex-Audi Head designer. they hired a head designer from German Auto Maker with high compensation and him as the Head designer of Kia Motor. He did not show its ability to change everything soon after taking the spot, but I assumed that Kia would dominate in its car industry someday. Now! Kia launched several cars and the sales of the cars has been increased over the years.  NOW, Its stock is trading at 30,000 Won ($30) However, I expect the stock is overvalued and it should be around $20 rather than $30.

About Hyundai Motor

Before writing about this issue, I should understand what Operating Profit is.
Operating Profit = Sales - COGS - Administrative Expenses

Hyundai rose its Operating profits 31% to 863.3 billion won from 657 billion won.
Hyundai motor share have gained 19 percent this year and keep rising its values.

Thoughts about Amazon Kindle and its stock

I read the article from Bloomberg about Amazon Kindle!
Amazon introduced two versions of Kindle.
1. $139 model working with Wi-Fi
2. $189 model working with 3G and Wi-Fi
Kindle is still best selling product on its e-reader and book industry, but there are other competitors such as Apple and Banes and Nobles, called Nook. Amazon wants to maintain its position as the market leader, but they face challenges from IPAD offering color pictures and video. However, Kindle only displays text in black on whiter without colors.
Founder of Amazon, Jeff Bezos is not convinced the Kindle needs a color or touch screen right now, but how he explains the fact that Amazon bought a company called Touchco and testing color technology! I think Bezo feels a need for color screen to boost sales of next Kindle and dominate the e-book market!

However, a good thing for Amazon is the scale of supplier of its library offering 81% of books are $9.99 or less to lure more customers. They have been selling more e-books than paper books over the years.

Amazon's current stock price is around $117 and when I looked the stock prices over 5 years, I feel the stock price is little overvalued, so I think its stock price will be declined in this year. Average of the stock price will be between 90 and 100.