A money manager that I respect highly (but do not employ) said the following about KEP:"KEP is an excellent value [at 9 3/8] down from $28 to $8 per share in the Asian currency crisis. . . . Already South Korea is demonstrating some of the positive indications that are a necessary precursor to recovery, such as a very recent reversal of their current account deficit. The demand for electricity is fairly inelastic, and a slowdown in the South Korean economy, the worlds 11 largest, from 8% GDP growth rates to 0% or so in 1998, will allow for a welcome pause in the construction budget. The only distributor of electricity on the Korean peninsula, KEP (a monopoly), has had to scramble to keep up with demand as growth rates for consumption of electricity have outstripped GDP growth, running 10% per year in most years of the past decade." He concluded with a prediction of price in the $20 per share range in the next 3 years. Any comments?
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