The Korea Exchange has designated it as an ‘investment caution’ stock. This is due to the fact that the stock price fell by more than 15% for two days due to foreigners’ ‘let’s sell’ march. Individual investors, on the other hand, started buying at low prices. During the same period, it swept 685.1 billion won.
Naver announced on the 4th that it would purchase Poshmark, a US used trading platform, for $1.6 billion (about 2.34 trillion won). Immediately after the announcement, questions arose as to whether the acquisition price was high, and the stock price plummeted. Foreigners net sold 733.5 billion won worth of stock for two days, pulling down the stock price. It is also interpreted that foreign securities companies such as Citigroup and JP Morgan issued sell-off reports, which stimulated the stock market.
Accordingly, the Korea Exchange designated Naver as a stock to watch for investment, saying that Naver traded intensively in ‘minority accounts’ for a short period of time. This includes cases where the participation rate of buying or selling of the top 10 accounts for the last 3 trading days including the same day is 40% or more. In the case of Naver, foreign securities companies such as Citigroup and JP Morgan, which issued a sell-off report, were intensively selling, falling under the criteria for designation of investors.
Domestic securities firms generally positively evaluated the acquisition of Poshmark. We believe concerns over the acquisition price are overvalued. The acquisition could speed up its entry into the global market, such as securing a bridgehead in the North American commerce market. However, it is analyzed that profit improvement through synergy is essential to recovery of growth potential. Kim So-hye, a researcher at Hanwha Investment & Securities, said, “When Naver is incorporated into Poshmark, it is inevitable that Naver’s company-wide margin will fall.” said with
Meanwhile, Naver stopped the decline for two days on the 5th and is trading at 166,500 won as of 10:47 am, up 1.52% from the previous trading day.
By Park Byung-jun, staff reporter real@hankyung.com