Samsung Electronics just promised shareholders up to 110 trillion won in returns. That's $80 billion for those of you still counting in freedom units. The company will start with 30 trillion won in cash dividends this quarter, which is more money than every retail trader on Reddit will collectively earn in their lifetimes.
This announcement came right after SK Hynix did a buyback. Samsung saw that and decided to raise. Classic corporate d*ck-measuring contest, except with enough money to buy several small countries.
The technical analysis here is simple. Samsung makes chips. People buy chips. Samsung has cash. Samsung gives cash to people who already have cash. None of this changes the fact that your moving average convergence divergence indicator still can't tell you what the stock will do tomorrow.
Retail traders will see this headline and think it means something. They'll check their brokerage apps. They'll read three paragraphs of a Seeking Alpha article written by a guy named CryptoWolf87. They'll convince themselves that shareholder returns are bullish. They'll buy calls. The stock will do whatever it was going to do anyway, which has nothing to do with this announcement.
Ninety trillion won minimum. That's the floor. Samsung looked at its balance sheet and decided that returning the GDP of Morocco to investors made more sense than letting貑finance Twitter speculate about what they might do with it.
The chart doesn't care about shareholder returns. The chart doesn't read press releases. The chart is a visual representation of collective human stupidity rendered in candlesticks, and it will continue doing exactly what it was doing before Samsung's CFO sent this memo.
But sure, add it to your DD thread. I'm confident that'll be the edge you've been missing.
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