Contents
I. Recent IT hardware sector changes ..............................................................................3
1. Cyclical vs. non-cyclical...................................................................................................3
2. Outperformance of non-cyclical large-cap IT stocks.......................................................4
II. Investment strategy.......................................................................................................7
1. Attractive valuation vs. stronger-than-expected earnings ...............................................7
2. Major cyclical IT stocks appear undervalued ..................................................................8
3. Semiconductor more attractive than display; Time to accumulate Hynix .......................9
4. LGE, SEMCO, and LG Innotek appear attractive among large non-cyclical IT shares ...10
Samsung Electronics ......................................................................................................19
Hynix Semiconductor ......................................................................................................22
LG Electronics.................................................................................................................25
Samsung Electro-mechanics ..........................................................................................28
LG Innotek ......................................................................................................................33
LG Micron .......................................................................................................................36
Nepes.............................................................................................................................40
Phicom ............................................................................................................................43
Uju Electronics ................................................................................................................46
TCK................................................................................................................................49