Samsung is a company that is traded on the Korean Market; therefore, the analysis used the ADR as a substitute because an American investor would only be able to purchase the stock in the form of an ADR, mutual fund, or ETF. Samsung is a company that produces a large array of products including TV’s, Laptops, Phones, and other electronics. Currently, they are experiencing some scrutiny for their latest phone, it had an event where one of their phones actually exploded. This caused a major recall for the phone and sank the stock price. The ADR is now trading at $1,250 a share. Which is where a big red flag for investors is raised, when a stock price is that high it causes major risk exposure. Purchasing just 1 share of SSNLF you could purchases an ETF, Mutual Fund, or build a small portfolio of stocks for much cheaper with lower risk and most likely a better return. The dividend ratio is 1.4% and the P/E ratio is 10.5 which are both strong ratios but having the risk with the ADR is completely negates the strength of those ratios. After doing this quick analysis over Samsung, it was decided that in the live market place they are a fierce competitor but in the stock market that are not a good option for American investors to …show more content…
However it is important to note, a conservative approach in purchasing the stock should be taken. Apple’s current state and the state of the market apple would be a good stock to use in balancing a portfolio or using it for its dividend yield. Nevertheless, this analysis can also conclude that Apple is not necessarily considered a home run stock. It is expected that to see major change in capital gains could occur within the next two years. In the wide scope of things Apple is a great long term investment, but if an investor is looking for a good performance without being willing to wait, Apple is not a good pick for