SK Telecom

SK Telecom at a 6+% Dividend Yield: Entry Timing Analysis

Event-Driven
207 Views, 17 Jan 2022 16:51
EXECUTIVE SUMMARY
  • Until mid-January each year, local brokerages sell blue-chip stocks as they most aggressively engage in yearend dividend arb plays. They are repeatedly busy closing the arb positions until mid-January.
  • Local pensions' selling SKT can be interpreted as a preemptive portfolio cleaning to include LG Energy. Compared to other local institutions, pensions often become the first to do cleaning trading.
  • As we are past mid-January, the position closing for the yearend arb play should have been over. So entering SKT now doesn't seem like a bad idea.
detail (3-minute read)
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Sanghyun Park
Korea / Special Sits, Pairs, Index Rebalancing
Clepsydra Capital
South KoreaEvent-DrivenEquity Bottom-Up

I investigate special situations, pairs, and index rebalancing trades in Korea.

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