SEOUL, South Korea--(BUSINESS WIRE)--Finance executives at Seoul-based wealth management company AMJ Hall Global, have reported that SoftBank Group Corp. shares hit their highest level in 20 years, as a series of buybacks helped recover stock losses sustained during the coronavirus market rout.
Director of Institutional Trading at AMJ Hall Global, Peter Cross, reported “On Tuesday, the stock grew 4.6% to 6,190 yen ($58), its highest level since March 2000. This is more than double the mid-March level of this year, which marked the virus-impacted lowest point for the company, whose market value has since surged by about $68 billion. The benchmark Topix index did not change much on the day.”
SoftBank’s recovery is something of a vindication for its founder Masayoshi Son, who announced his intentions to sell 4.5 trillion yen in assets to minimise debt and bankroll record share buybacks. Son has often complained that SoftBank’s shares were trading lower than the value of its investment portfolio, even at their peak. According to the company’s own calculations, even after the recent gains, the stock is still trading at a discount of around 50 per cent.
“It’s fair to say that part of today’s strong move stemmed from the buyback activity, and a more positive global sentiment around tech also adding benefit,” said Harry Jacobs, Director of Private Clients at AMJ Hall Global.
During the same period, SoftBank has also had a string of other wins, including merging its Sprint Corp. with T-Mobile US Inc. and watching some gambles pay off. On Thursday, online home-insurance provider Lemonade Inc. climbed as much as 86 per cent in its U.S. initial public offering.
With nearly 90 companies in its portfolio, SoftBank’s Vision Fund lost approximately $18 billion in the fiscal year ended March 31, as it wrote down the importance of investments in WeWork and Uber Technologies Inc., among others. Son himself said that he anticipates around 15 start-ups from the fund to go bankrupt while predicting that another 15 will prosper.
About AMJ Hall Global
AMJ Hall Global helps protect the financial future of our clients by providing astute and well-researched investment solutions in mature and emerging markets. Our team of investment professionals offers a diverse range of investment skills covering a wide variety of financial activities that include wealth and fund management and securities trading.
Contacts
Mr. Sam Eun-Soo, Research Director
Switchboard +82 70 4731 5039 | Email [email protected]
4fl, Goodman Tower, 542 Eonju-ro (689-2 Yeoksam-dong), Gangnam-gu, Seoul, 06147 South Korea
