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[Alpha Biz=(Chicago) Reporter Paul Lee] Ecopro, a secondary battery company, is about to become an emperor. Despite the short selling by foreigners that has continued since the beginning of the year, it is set to surpass 1 million won based on the closing price due to buying by individual investors. Attention is focusing on whether the eco-pro meme stock craze, dubbed the Korean version of GameStop, will lead to victory for individual investors.
According to the Korea Exchange on the 12th, EcoPro rose 1.14% to 976,000 won on the previous day. If it rises more than 2.46%, it will be the only emperor stock with more than 1 million won.
Since May last year, emperor stocks with stock prices exceeding KRW 1 million have also disappeared from the local stock market. Taekwang Industrial Co., formerly the only Hwangjeju Island, fell to around 900,000 won on May 10 last year, and its current stock price has since fallen to around 590,000 won.
The LG Chem also surpassed 1 million won in February 2021 and became an emperor stock, but is currently trading at 650,000 won.
Ecopro's stock price was 103,000 won until the end of last year. However, it surged 845.57% this year due to strong buying by private investors.
There were also concerns about overheating due to such a surge in stock prices. This is because Ecopro's highest target price offered by securities firms is KRW 450,000, less than half of the current stock price.
Some securities firms have published reports on selling EcoPro, and some have neutral opinions, which means selling. However, as criticism from individual investors continued, the publication of reports on the company has disappeared since May.
Some observers say that Ecopro's stock price has temporarily risen due to some short covers of short stock selling.
According to the Korea Exchange, Ecopro's short stock selling balance was 1,847,518 shares on May 30, but decreased to 1,329,292 shares as of the 6th. The proportion of short stock selling balances also fell slightly from 6.94% at the end of May to 4.99% at present.
In fact, foreigners have bought about 343.1 billion won of Ecopro from last month to the present. This is the second largest net purchase after Samsung Electronics (1.9639 trillion won).
If this trend continues, it is expected to surpass 1 million won based on the closing price. In particular, there is an expectation that EcoPro will be included in the Korean index of Morgan Stanley Capital International (MSCI) next month. In this case, there may be an influx of buying in terms of supply and demand.
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
