The coronation ceremony of Ecopro’s ‘Hwangjeju (stocks over 1 million won per share)’, which is the representative stock of secondary battery materials and the second largest market cap on the KOSDAQ, shook the rankings of Korea’s rich stocks. Thanks to EcoPro, whose stock price has risen more than 12.5 times this year alone, former Chairman Lee Dong-chae of Ecopro rose to third place in the list of rich stocks , breaking the ‘Big 4’ structure of four Samsung Group owners who had monopolized it for over a year.
Despite the criticism of ‘overheating’, which is getting louder day by day, especially in the stock market, Ecopro’s stock price is 130 exceeded the million-dollar mark. This is why attention is focused on how the future stock price direction of Ecopro will affect the stock code structure.
Lee Dong-chae, former chairman, equity valuation of 6,488.1 billion won
According to FnGuide, a financial information company, on the 26th, former Chairman Lee Dong-chae’s equity valuation was 6,488.1 billion won based on the closing price the previous day, followed by Lee Jae-yong, chairman of Samsung Electronics (12,723.4 billion won), and Hong Ra-hee, former director of the Leeum Museum of Art (8,396.6 billion won), in second place. It was ranked 3rd after the The stock price of EcoPro the day before closed at 1,293,000 won, up 11.37% (132,000 won) from the previous trading day. Ecopro’s stock price also broke the 52-week reporting record for the third day in a row based on the closing price.
Hotel Shilla President Lee Boo-jin and Samsung Welfare Foundation Chairman Lee Seo-hyun, who had ranked 3rd and 4th, respectively, took 4th and 5th places with 6.211 trillion won and 5.3083 trillion won, respectively.
It has been 15 months since April 22, 2022 that the four members of the family of the head of the Samsung Group gave up the 1st to 4th places in the domestic stock code rankings to outsiders. At the time, Kim Bum-soo, head of the Kakao Future Initiative Center, was pushed out because he ranked higher than the family of the head of the Samsung Group.
As of April 29, 2021, after Chairman Lee Jae-yong, former Director Hong Ra-hee, President Lee Boo-jin, and Chairman Lee Seo-hyun inherited the shares of the late Samsung predecessor Lee Kun-hee, domestic stocks other than the four members of the Samsung Group head family Only two people, Beom-soo Kim and Lee Dong-chae, are the only two people who have risen to the top 3 positions. In particular, former Chairman Lee Dong-chae is the first time that the head and major shareholder of a listed company on the KOSDAQ market ranked higher than the four members of the Samsung Group head family.
Lee Dong-chae stock property, 11.8 times this year alone ↑… Ranking jump 33 steps
It was on the 18th that Chairman Lee Seo-hyun gave up the 4th place to former Chairman Lee Dong-chae among the four members of the family of the head of the Samsung Group. This is the day when Ecopro’s share price rose 11.91% (119,000 won) from the previous trading day, recording 1,118,000 won per share, becoming the ‘Emperor’ based on the closing price.
Former Chairman Lee Dong-chae is the largest shareholder with an 18.84% stake (5,017,849 shares) in Ecopro, the holding company of the Ecopro Group. Thanks to the stock price of EcoPro, which soared 1155.34% this year alone, former Chairman Lee Dong-chae’s stock wealth increased 11.8 times, and the stock code ranking rose 33 places from 36th to 3rd.
Attention is also focused on whether former chairman Lee Dong-chae will be able to rise to a higher rank. As the gap between former director Hong Ra-hee and former director Hong Ra-hee in second place amounts to 1.9085 trillion won, the prevailing assessment is that the reality is that the possibility of realization is not high in the short term. Assuming that former manager Hong Ra-hee’s stake valuation remains at the current level, Ecopro’s share price should reach 1.68 million won per share, which is about 30% higher than the current level, to be possible.
“Additional increase due to short squeeze
and MSCI incorporation”
vs “Inclination due to overheating”
Even after becoming the ‘Emperor’바카라사이트, the stock price of Ecopro continues to march high, and the ‘high valuation’ controversy as well as the disagreement over the future direction are growing
. ‘Short squeeze’ refers to a trading method in which short-selling investors who borrowed and sold stocks in anticipation of a stock price decline buy the stocks to prevent a larger loss if the stock price rises.
As of the 21st, the short sale balance for Ecopro was 1,223.8 billion won, down 78.6 billion won from the 13th (1,302.4 billion won) a week ago. The ratio of the short sale balance to the market cap also fell by 1.10 percentage points from 5.12% to 4.02%.
Foreign and institutional investors recorded net purchases of KRW 716.2 billion and KRW 56.5 billion, respectively, for Ecopro over the past week (18-25). Foreign and institutional investors, who account for 95% of domestic short selling, bought a large amount of EcoPro stocks because of the ‘short squeeze’. The fact that EcoPro is highly likely to be included in the MSCI Korea Index, which is
scheduled to be announced on the 11th of next month, is also acting as a factor for further increase in EcoPro’s share price. Kang Song-cheol, a researcher at Eugene Investment & Securities, explained, “We estimate the demand for foreign fund (passive) purchases at 990 billion won when EcoPro is incorporated into the MSCI index.”
However, in the stock market, the majority of experts say that EcoPro’s share price is ‘overheated’. It is also in line with the fact that most securities companies have not presented a target price, saying that the stock price has exceeded the valuation level.
Jeong Won-seok, a researcher at HI Investment & Securities, said, “I think the current stock price is overheated because the ecopro brother stock is rising because of the short squeeze.”
Another risk is that there were many cases in which growth stocks that soared on investment booms in the past showed a concentration of investment due to growth expectations only, and then ended in contraction as the bubble burst. Choi Yoo-joon, a researcher at Shinhan Investment & Securities, added, “As stocks with fast rises also have high downside volatility, it is difficult to say that the quality of the KOSDAQ rally, which has recently intensified with a small number of stocks, is high.”
