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00:00Let's kick things off with what you made of what Sampson has said today in this preliminary letter. So we we don't just say we don't have the full details yet from the results but the numbers look good. Seven point eight trillion one profit. High end of estimates better better than our estimates. I think where the as you mentioned where the beat is coming from is really semiconductors and displays. If people forget this is their cash cow. Yes. Yes. And obviously this Note 7 is a really really unfortunate timing because they would have grown profits and the coffin and the profit quarter on quarter this if it wasn't for the Note 7 issue. But even though I expects the Note 7 profits and the overall mobile profits were coming down quite a bit quarter on quarter overall. The company profit is not down that much from just four eight point one down to seven point eight. So this is really showing the breadth of the company. Let's face it. I mean that's a colossal number. I mean I mean to be churning it turning out and throwing off that much money is quite something here. But we don't know and we don't know from this set of results what the impact is of that recall yet. We don't know is it we're conservative estimating it could be up to a trillion one impact from loss of sales and the cost of replacing the so just over a billion dollars. About about a billion dollars a trillion won. So you add that back they would have had a nice growth in profit a quarter on quarter . If you add that back by the big picture 1 trillion one profit from annual profit of over 30 trillion one is not a huge impact . And so much but some DRAM NAND and display DRM is an up cycle . NAND is also in an up cycle and OLED they have more than 90 percent market share and the whole world all the smartphone makers in the world are now moving to 8. And so they've got a lot of suppliers coming to them including Apple soon. So I think on the component side the future looks very very bright from semiconductors and displays handsets. It's always an area of concern. The more money they make the more of a concern it is it's in the food that it's going to for the following quarter . Is it going to be like not kids are going to go the way of HTC that survived but I don't think it's ever going to be that bad . This company is totally different HTC Nokia it's vertically integrated. They've got the best components in-house. That gives them a bit of an edge. And look at valuation it's just extremely cheap. It always amazes me. But that is partially down to where it trades as well. Yes. Which is it is the old dilemma. It's cheap because it always has been cheap. So when is it going to be not cheap. And that's a dilemma which I think is where we're heading to with these restructuring proposal exactly by the activist invisible singer. The thing is Paul Elliott singer isn't just very briefly on that splitting it into two companies . What's his beef. To do this why does he want this restructuring . So I think well what really what Elliott wants is to try to create value for himself for shareholders and I think one of the big problems with Sam's electronics is it's number one it's too big it's too big for the Korean market. It's almost 20 percent of the Cosby and so that really puts an impact on investor access and liquidity but also that's the problem isn't just only with this way of saying when where it trades in so where you don't have the liquidity and the ability for foreigners to actually invest that much money. So yeah I spitting up you send it to New York or whatever and listed there where you can get the value. Yeah. So you can split up in two smaller lumps and have one listed in the US but also what it does is if you split it up into an operating company and a holding company is investors don't want access to this operating company you know it's the biggest semiconductor company in the world by volume second largest tech company in the world by way of just slightly behind Apple. One of the biggest companies in the world and but the problem is people don't like these corporate governance issues and they've got so much cash on the balance sheet they don't want to give value to the cash. If you split it up it's a more of a pure play to invest. I think it can unleash quite a lot of value. We're talking about the future of Samsung here as well. We're talking about the activist investor and indeed what Elliot wants splitting the company into tuna. You like this idea. Yeah definitely I like it because it gives you a pure way to invest in the operating assets. The cash doesn't get any value where it is right now sitting mixed up with lots of other things. If you split it up then the Lee family would can own the holding company and investors want the one to invest in the biggest semiconductor company in the world can invest in the operating company. I think it makes a lot of sense. I don't think some of those things where were they. They may not take them all . They may not do them or it might not be all in their best interest. But I think generally speaking I think there is a lot of value in the proposal. Will the Samson leadership pay any attention really to this though in your view. I mean you've worked there is quite conservative at the same time dynamic. I know that's a contradiction in terms but it is. Yeah. I mean honestly I think they've got their own plan and they're going to go ahead with their own plan. I'm not so sure this will have a massive impact if any on what they're going to do. But it came at a really interesting time because I think now the company is doing a lot of things related to restructuring and it does look like they're getting ready to restructure the whole group. And so obviously with the biologic alarm as well. Yes we did buy a lot of glamour spinning off the IPO. Some other entities Samsung sd s S.A. and Chambers Moses a lot of a lot of things have been happening. And so the timing is really interesting . A valiant proposal but I don't I don't think this in itself is driving them to do this .

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