Amplified Uncertainty
The stock price of Samsung Electronics fell from close to 1.5 million won (US$1,383) to 1.3 million won (US$1,199) between December 2013 and January 25, 2014. At present, even its executive members are selling their treasury shares in the wake of the earnings shock, to add to investors’ concerns.
According to the Financial Supervisory Service, Samsung Electronics’ Health & Medical Equipment Division President Jo Soo-in and Lee Sang-cheol, head of its Latin America business, sold 1,638 shares worth about 2.22 billion won (US$2.05 million) this month.
The former announced on January 2 that he recently sold 700 shares, 100 on December 26, 100 more on the following day, and 500 on December 30, to collect 1 billion won (US$922,339). The latter sold 938 shares on January 8 to get 1.2194 billion won (US$1.1243 million).
Likewise, president Kim Jae-kwon, who is in charge of the global operation of the Mobile Communications Division, sold 1,100 out of his 4,475 shares to collect 1.551 billion won (US$1.431 million) on December 30. He is estimated to have cut a loss of about 100 million won (US$92,234).
In the meantime, Samsung Electronics Media Solution Center President Hong Won-pyo and Senior Managing Director Park Dong-wook bought treasury shares during the same period. The purchase amount stood at just 20 and 50 shares though, respectively.
“It appears that the executive members tried to cut their losses after the earnings shock,” said a securities industry source, adding, “This means that they are not entirely positive about the future performance of their own company, at least in the short term.”