Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  KOREA EXCHANGE  >  Samsung Electronics Co Ltd    005930   KR7005930003

SummaryNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

Samsung Electronics Sees $12 Billion in Market Cap Wiped Out After US Courtroom Defeat

share with twitter share with LinkedIn share with facebook
share via e-mail
0
08/27/2012 | 10:06am CET

--Samsung share-price decline wipes out more than $12 billion from market capitalization

--Shares fall 7.5%, their biggest single-day drop in nearly four years after US court ruling in patent trial against Apple

(Adds closing price in third paragraph, updates company's market capitalization in fourth paragraph and trading activity by local institutions in fifth)

 
   By Min-Jeong Lee 
 

SEOUL--Samsung Electronics Co. (>> Samsung Electronics Co., Ltd.) saw more than $12 billion wiped from its market capitalization Monday as its shares were sold off following the company's heavy defeat to Apple Inc. (>> Apple Inc.) in a U.S. courtroom.

Analysts say the legal loss increases uncertainty over the South Korean manufacturer's future products.

The stock opened 6.8% lower and ended down 7.5% at 1,180,000 won, posting its biggest single-day percentage drop in nearly four years. Shares at one point fell by as much as 8% to KRW1,173,000.

The share price decline Monday wiped KRW14 trillion ($12.3 billion) off the company's market capitalization.

Local institutions were big sellers, offloading a net 286,000 stocks. Foreign investors, who hold about half of Samsung shares, and retail investors, were net buyers.

The slide in Samsung shares reduced the company's contribution to the overall capitalization of South Korea's main Kospi index to about 15.7% from 17%.

"The context of the loss in this case is a lot worse than had been expected," including the amount of damages Samsung may now face, said Hi Investment & Securities analyst Song Myung-sup.

U.S. jurors delivered a sweeping victory to Apple, awarding the Silicon Valley company $1.05 billion in damages and providing ammunition for more legal attacks on Apple's mobile-device rivals. Jurors found that Samsung infringed six of seven patents contested in the case.

Should this lead to a sales ban of Samsung's products subject to dispute in the U.S., it will start eating away the company's revenue from the fourth quarter, Mr. Song said. "It will be a difficult battle over a longer period of time."

Analysts said a focal point from here will be whether the patent battle will spread to Samsung Electronics' flagship Galaxy S III phone. The products the U.S. court found infringe Apple's patents are all older mobile devices.

Taurus Investment & Securities analyst Kim Hyoung-sik downgraded his six-month share price target for Samsung to KRW1,600,000 from KRW1,680,000. Mr. Kim pegs near-term support for Samsung's shares in the KRW1,000,000-KRW1,100,000 range.

Share prices of other Asian makers of smartphones running Google Inc.'s (>> Google Inc) Android operating system--which was a part target of Apple's lawsuit--were lower Monday, too. ZTE Corp.(>> ZTE Corporation) closed down 8.2% at 10.01 yuan in Shanghai while HTC (>> HTC Corp) ended off 1.9% at 257.50 Taiwan dollars.

LG Electronics (>> LG Electronics Inc.) bucked the trend and was up 2.8% at KRW69,000 amid expectations it will be able to take market share from Samsung.

Write to Min-Jeong Lee at min-jeong.lee@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on SAMSUNG ELECTRONICS CO LTD
06:04p SAMSUNG ELECTRONICS : Teaser shows Samsung will debut Galaxy S8 on March 29
06:04p SAMSUNG ELECTRONICS : unveils Galaxy Tab S3
06:03p LG ELECTRONICS : gets back to basics for mobile rebound
05:03p SAMSUNG ELECTRONICS : 3 top Samsung executives quit after indictment
03:34p SAMSUNG ELECTRONICS : Galaxy S7 edge Named Best Smartphone at MWC 2017
03:33p CISCO : Jasper and Jupl Introduce Wearable to Empower Seniors with Independence ..
03:16pDJSAMSUNG ELECTRONICS : Heir Lee Jae-yong Indicted on Bribery Charges
01:37p SAMSUNG ELECTRONICS : heir to be indicted on bribery charges
01:21p SAMSUNG C&T : Group chief charged with bribery, corporate nerve centre dismantle..
01:06pDJSAMSUNG HEIR'S NEW LIFE IN PRISON : 7 Hours of TV, $1.25 Meals
More news
Sector news : Phones & Handheld Devices - NEC
02/02 European shares fall weighed down by poor earnings; Reckitt up
02/02 Nokia beats market expectations, sees network market improving
01/17DJEricsson and Cisco to Overhaul Network of Vodafone Hutchison Australia
01/08 Automakers, suppliers team up to share costs of self-driving cars
2016DJNOKIA : Apple Face Off Over Patents -- WSJ
More sector news : Phones & Handheld Devices - NEC
News from SeekingAlpha
08:14a Apple throws a curve with new iPhone
06:53a WALL STREET BREAKFAST : Investors Await Trump Policy Speech
02:52a Samsung heir indicted for bribery
02/27 WALL STREET BREAKFAST : LSE-Deutsche Boerse Deal In Danger
02/27 Galaxy S8 launch set for March 29
Advertisement
Financials ( KRW)
Sales 2017 221 285 B
EBIT 2017 40 586 B
Net income 2017 30 286 B
Finance 2017 71 698 B
Yield 2017 1,73%
P/E ratio 2017 9,00
P/E ratio 2018 8,28
EV / Sales 2017 1,02x
EV / Sales 2018 0,89x
Capitalization 298 257 271 M
More Financials
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 41
Average target price 2 280 737  KRW
Spread / Average Target 20%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Boo-Keun Yoon Co-President, Co-CEO & Director
Jong-Kyun Shin Co-President, Co-CEO & Director
Oh-Hyun Kwon Chairman & Chief Executive Officer
Sang-Hoon Lee Co-President & Chief Financial Officer
Jae-Yong Lee Director & Vice Chairman-Executive Board
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
SAMSUNG ELECTRONICS CO..263 958
FIH MOBILE LTD19.92%3 035
HTC CORP--.--%2 115
MERRY ELECTRONICS CO L..--.--%876
SEOWONINTECH CO LTD--.--%179
VUZIX CORP-7.35%130
More Results