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[trans] "SM & YG, who are encountering unfavourable reports at the same time, are seeing no abnormalities in their share prices"


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-This is a business analysis article about the impact (or lack thereof) of recent unfavourable news on the share prices of SM and YG.-

The share prices of SM Entertainment and YG Entertainment, both of which have been shrouded in controversy recently in the same period of time due to their artistes' scandals, are seeing no extraordinary wavering and are on the rise.

-details about news of SM's Taeyeon and Baekhyun, and YG's Park Bom omitted- 

However, despite such unfavourable reports, the share prices of both SM and YG rose compared to before. After 19 June, SM's share prices rose by 12%, while YG also saw a rise of 4% entering into July.

Instead of any cause for concern, there are no extraordinary consequences in the shares market at such unfavourable reports. Regarding this, the experts explained that this is attributable to the fact that the mechanics of the domestic entertainment companies have matured in being able to deal with unfavourable news quickly, and that the fan bases of their artistes have broadened to the extent that the impact will not be huge when encountered with issues about the personal lives of the singers.

-details about how Girls' Generation's or Big Bang G-Dragon's news have not previously had major repercussions on SM's or YG's share prices omitted- 

The experts explained that the share prices of big entertainment companies such as SM or YG reflect the effects of large-scale concerts overseas more sensitively, compared to the issues surrounding the personal lives of their artistes.

For instance, the fact that SM's share prices have been rising recently is said to be due to the increase in the possibility that their performance will improve in the 2nd and 3rd quarter, via the fact that their group TVXQ made a breakthrough with their Japanese concerts last month, where they broke the 2 million audience members barrier in the shortest time, garnering huge success, and that EXO's on-going concerts will be a success.

Kwon Yoon Gu, a researcher at Dong Bu Securities, said, "Following SM, YG is also seeing a little rise in their share prices amidst the anticipation for their new group "Winner", whom they are promoting this year. If there is no harm caused to the concerts or artiste activities, which have an influence on the shares performance, there is almost no phenomenon of the share prices dropping due to the scandals of the company's artistes."

http://bit.ly/1sgsUJ0

 

translated by mug_ping

 

 

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1 year return:

 

SM: +15.99%

YG: -1.42%

JYP: -17.09%

 

An SM investor who bought stocks 12 months ago, was able to earn and grow his stocks 16%.

 

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Well smart people know that this is just stupid scandal which is nobody cares except delulu fangirls and haters. Of course stock will rise, bad publicity is also publicity, this just proving the investor how big influence from respective artist gain public attention from little incident

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for a start why don't we say idols dating iso idols dating scandals.

 

TVXQ!  :ilove:  even after 10 years has an impact on SM's market performance.

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It's a business matter so I'm not going to say much.. LoL.. Big companies like SM and YG will not easily fall or break by just a mere rumor or scandal... K-Netz will hate all they want but SM are gaining profits mostly from overseas activities and concerts same with YG.. LoL

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the fact that SM's share prices have been rising recently is said to be due to the increase in the possibility that their performance will improve in the 2nd and 3rd quarter, via the fact that their group TVXQ made a breakthrough with their Japanese concerts last month, where they broke the 2 million audience members barrier in the shortest time, garnering huge success, and that EXO's on-going concerts will be a success.

 

the most important part of the whole article. TVXQ!!!!  :ahmagah:  :ahmagah:  :ahmagah:

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For instance, the fact that SM's share prices have been rising recently is said to be due to the increase in the possibility that their performance will improve in the 2nd and 3rd quarter, via the fact that their group TVXQ made a breakthrough with their Japanese concerts last month, where they broke the 2 million audience members barrier in the shortest time, garnering huge success, and that EXO's on-going concerts will be a success.

 

translated by mug_ping

 

TVXQ >>>>>>>>>>>>>>>>>>>>>>>> Scandals. :smile:

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  • 1 month later...

I question if they came to the right conclusion. Scandals and controversy may not have a immediate impact and on stock prices but they cause major changes down the road. The fact that previous scandals also failed to affect  the stock price should be taken as evidence that there is not a direct correlation. There's way to many variables to really conflate the two in any meaningful way especially when it comes to two companies who can sweep issues under the rug with ease.

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TVXQ = the cleanest scandaless kpop group

 

I believe Yunho kept quiet, and did not make any reckless move even when the most popular singers, and actresses in Japan said they considered him as their ideal guy....  Gotta respect the guy for doing so much to keep the group to a top tier for a very long time  :smile:

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