Samsung's sell-off is overdone relative to fundamentals, but the weak shareholder return plan and dividend-over-buyback choice suggest management may view the stock as expensive.

So, what happened with Samsung? So Samsung also missed on earnings per share. They missed on revenue by about a quarter of a percent. So very nominal actually there. They missed on earnings per share by 1.77%.

So a little bit more. Does that really justify a 9% sell-off? No. But they also had their shareholder plan that they revealed.

So there were expectations that Samsung would return as much as 200 trillion one. So they came in at a 100red trillion. They came in at literally to the dime the lowest possible end.

At least 140 was a regular expectation. Yeah. And and the returns they announced were really closer to 90 to 110 if you include some dividends. Maybe maybe closer to 104 to 110.

Barclays had increased its buyback expectations JP Morgan div okay dividend heavy structure was key to the disappointment investors wanted a larger more immediate buyback oh that's really interesting

it remains unclear why Samsung management team chose a dividend over a buyback as we believe many investors prefer the buyback as a more effective option right well because they want to see the stock get pumped up but honestly it might be a little bit of a signal that Samsung thinks the stock is too expensive right that's possible because if you're if you're buying back your own stock.

Oh, I bet you that's exactly what it is. Just think about this logically for a moment. Okay, let's say you run, you know, an ice cream stock and your stock's trading for a,000 bucks and you're looking at the financials going, thousand bucks, that's nice for this stock.

I know the books. This puppy's worth like 500 bucks on a good day. uh you know and then and then it's trading for a thousand bucks. People are like, "Hey, you should do buybacks."

It's like, "Yeah, we'll return some shareholder capital, but uh let's just do some dividends." Why? Because if it goes back to $500, if you bought the share back, now you've got an L, right?

Cash dividends were p prioritized over share cancellation. This is a quote coming from uh who is this? NH Investment