The company will be given an added boost by a recovery in Asian economies next year. In one year it has gone from penthouse to doghouse. Judging from current news reports you would think the country was about to disappear off the face of the map. The market has fallen below December's lows because of financial troubles at several large chaebol and because of a wholesale dumping of emerging market stocks by skittish fund managers. Despite the negative sentiment, we believe now is the perfect time to load up on South Korean stocks.
Investor psychology is at a lowpoint despite the meaningful economic reforms implemented.
The PEG ratio is just 0.45 on next year's estimates. KEP holds the South Korean electricity monopoly. The stock has been badly beaten up by the fall in the Won. Increased debt sevicing costs of dollar denominated debt will cause it to turn a loss this year. It seems to have passed the worst of it's problems and the stock is holding the December lows.