Explaining Korean Stocks and the AI Memory Trade - Rekt Mando
Speakers
Mando
— Professional Trader / Macro Analyst
Summary
Mando discusses his three core macro longs: South Korea stocks (governance reforms + AI memory), uranium (breakout), and Google (AI behemoth). He warns against SaaS due to dilution and favors buying assets breaking to all-time highs. He has no crypto exposure but watches Zcash.
- Mando is long South Korea via EWY, Samsung, SK Hynix on governance reforms and AI memory dominance.
- He is long uranium via URA ETF, citing a multi-decade breakout and inelastic supply.
- He is long Google (GOOGL) as the AI leader and most valuable company candidate.
- He avoids SaaS stocks due to massive stock-based compensation overhangs.
- He prefers buying assets breaking out to all-time highs with tight risk management.
- He has zero crypto exposure but watches Zcash as a potential bounce.
- The 'Korea discount' is closing due to new corporate governance laws forcing buybacks and dividends.
- Memory chip demand is structurally supported by AI, with fabs booked out years in advance.
Ideas
Long Korea governance and memory trade
South Korean stocks have historically traded at a discount due to poor governance (chaebol cross-ownership, no buybacks/dividends, weak minority rights). New laws are forcing buybacks, dividends, and better shareholder treatment. Simultaneously, South Korea dominates the memory chip market (90-95% share) with structural AI-driven demand. These dual catalysts make the index, Samsung, and SK Hynix compelling longs. The index has tripled but still trades at single-digit forward PEs.
Google as AI behemoth long
Google is an absolute behemoth that will dominate the AI trade. It is breaking out to all-time highs, has strong forward earnings, and he believes it could become the most valuable company in the world. It is one of his three core macro longs.
Uranium breaking out after 20 years
Uranium has been a 'widow maker' for 20 years but is now breaking out to multi-decade highs. Supply is inelastic, new nuclear plants are restarting, and the URA ETF captures the theme. It is one of his three core macro longs.
Avoid SaaS due to dilution
SaaS stocks are dangerous because they have massive stock-based compensation overhangs. As the trend reverses, continuous dilution creates a persistent seller. Buying dips in SaaS is like catching a falling knife. He advises being very wary.
