Korean Steelmaker Posco Rallies on Hopes Buffett Will Increase Stake
South Korean steelmaker POSCO closed almost 5 percent higher at $136.02 in New York trading today (Tuesday), after the company said Warren Buffett wants to buy more shares.
Current ADR price:
Buffett's Berkshire Hathaway already owns 4.5 percent of POSCO.
POSCO CEO Joon-Yang Chung met with Buffett yesterday during a visit to Berkshire's Omaha headquarters.
In a statement emailed to reporters, POSCO says Buffett told the CEO that he intends to buy more shares and regrets he didn't increase the stake last year when the global economic crisis had pushed POSCO's share price sharply lower.
It's almost tripled since its 2009 low in March of $47.09 to its recent high of $140 on January 11. Bloomberg says Berkshire may have a paper profit of over $1.3 billion on its POSCO holdings, which were disclosed for the first time in 2007.
We don't know how serious Buffett is about adding to the stake or when he might do it. He may have just been trying to make polite conversation with his guest.
We do know that it is very unusual for Buffett to talk publicly about his stock buying plans, and also unusual for him to buy when a stock is at an almost two-year high.
Current Berkshire stock prices: