Stock Prices Out of Proportion to Business Results

As the domestic stock market bulges with a newfound prosperity, stock prices of Internet-related companies have been sharply increasing as well, despite having miserable business results last year.
According to the Korea Stock Exchange(KSE), on March 18, stock prices of seven listed companies that engage in Internet business or electronic trade rose 110 percent on average so far this year.
However, these companies recorded large losses and decreasing surpluses in 1998.
The share price of Hankook Computer rose more than 300 percent to 15,100 won from the 4,450 won it recorded earlier this year, but its losses last year totaled 31.5 billion won, more than 23.7 billion won than those of 1997.
The stock price of Daou Tech recorded 8080 won, which was up more than twice the price it had early this year, but the net surplus of this company last year was only 460 million won, half that of the previous year.
A source at the KSE said, 'As a company's share price contains its future value, the share price is not always proportionate to its current business performance.'

Jangsoo Seo;jsbee@joongang.co.kr