RE: APT price Not every effect has an observable cause, because some causes are unobservable. This is my greatest frustration with the efficient market hypothesis, so please forgive my passion.
Yes, the price should be higher. But if you are a long, then that was true when you bought shares, too. When I bought, it was because I analyzed the company and macroeconomic factors (like the story majormac posted elsewhere), and concluded it was very undervalued. It's still very undervalued, so I buy some here and there. I would be worried, but all the news reports keep confirming that it is still undervalued, so I still keep buying.
In my mind, there's one major risk. We have a commodity that's being sold in US dollars, but incurs major costs in won. But our management is so on top of this, they used canadian costs in the BFS, which means that if Korea becomes as rich as Canada (on a per capita basis), and they allow their currency to float freely, and the country's new wealth is distributed evenly, so that the poor become rich enough to demand higher pay, and they do not fill those positions with international labor to keep costs down, our costs would soar to the numbers represented in the BFS. In reality, Korean costs are probably going to remain advantageous, and the BFS is seriously understating this. Which is a good sign. If they were overstating, I'd be selling!
But something tells me that the low price is more likely due to investor irrationality than to market fears about the rising quality of life in Korea, and what that means for costs, since the BFS clearly addressed those fears.
Cheers!