Jaehee Ryu
UC Riverside Extension
1200University Ave. Riverside,CA92507
E-mail: [email protected]
Phone: (951)2318081
I earned money with Posco. As Korean, I feel proud of that. When I was in Korea, I heard the
steel industry is becoming stronger. That’s one of the reason I invest to Posco.
Until July, 25, the price of stock was going up. I classified the reason in three parts.
First, the demand of steel rise 6.5% to 7% in 2011. Recently, Posco try to expend their
market to Europe. Currently, they export automobile plates to Europe. The effort of
maximizing their target market is reflected in the stock price. Second, they present their
second quarter’s record.
On July 22, POSCO reported its second quarter 2011 financial results. Net income jumped
22.5% sequentially to KRW 1,372 billion or KRW 15,725 per share (US$3.63 per ADR).
Compared with the year-ago quarter net income increased 22.6%.
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Because of that positive outlook, the price was increasing. Third, Posco tied up with many
Korean big companies. POSCO will form a consortium with Samsung to participate in the bid
But the concern that the price of stock will decline rapidly on third quarter make the price
dropped after July, 25.