Starting July 29, SK Hynix’s $SKHY U.S. stock ADRs will be able to be converted to and from South Korean stocks. Currently, U.S. stocks trade at a premium of more than 25% versus South Korean stocks, creating a huge arbitrage opportunity.



Based on experience, money flows to where it can find lower prices, so U.S. stocks will face pressure and may even trigger a sell-off across the entire semiconductor industry. The sell-off will likely begin before July 29; by the time official conversion is allowed, it is likely that there will no longer be any profit to be made.

#SK海力士
SK Hynix-11.52%
SKHY0.89%
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