Sweet SK Hynix: 300+% gain

$SK Hynix (000660.KR)$ $CSOP SK Hynix Daily Max (2x) Leveraged Product (07709.HK)$

One of the long-hold stocks that was bought during the Korean Stock Market Rout in March at $25+. Now $103.55+ per stock, we make around 314% gain.

Previously we have written on this stock when it was at $39:

No Sandisk No Micron No Problem
AI play continues: SK Hynix IPO coming

It is important not to chase the top but look for stocks that are oversold during fear, or major liquidity reallocation. The fundamentals need to be strong and intact even during dumping.

NOTE: $CSOP SK Hynix Daily Max (2x) Leveraged Product (07709.HK)$ is not a stock for beginners. We recommend buying the Korean stock instead: $SK Hynix (000660.KR)$

07709 is a 2X leveraged so it is very dangerous to enter at the top. Note that if it drops, it will also drop 2X. So for 2X-3X leveraged products, you need to find a very good entry point (from indicators) either during a dip or consolidation. And you need to be more than 100% certain that it is on a bullish trend, and this is where most beginners cannot grasp.

## Why did we choose SK Hynix? ##

We choose SK Hynix instead of Micron because of its current reputation and standing with $NVIDIA (NVDA.US)$. It is basically the TSMC of Korea. This is a stock that is well-positioned for more growth in the next 2-3 years.

So basically these reasons:

1. Strong technological advantages as compared to competitors like Micron, Samsung: essentially the TSMC of Korea.

2. Produce both memory and storage: basically it is Micron + Sandisk packed into 1.

3. Cheaper than Micron and Sandisk with better technologies: at only 15.8 P/E and 5.31 Forward P/E, it is basically at half the price of Micron’s 35 P/E

4. Upcoming US IPO (via ADR): this will create more upside later since it is cheaper than Micron.

However, 07709 is not a stock for beginners, we recommend buying the Korean stock directly instead $SK Hynix (000660.KR)$ .

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