1. What Happened?

Soosung Asset Management converted its convertible bonds (CBs) in LTC into shares and then sold them on the open market, reducing its stake from 8.41% to 6.80%. While this could be a simple profit-taking move, the market may interpret it as a concern about LTC’s future prospects.

2. Why Did They Reduce Their Stake?

The official reason is ‘customer account decrease’ and ‘exercise of convertible bonds.’ Convertible bonds can be converted into shares at maturity, and recovering funds through this method is a common strategy for asset management companies. However, considering the recent upward trend in LTC’s stock price, the possibility of profit-taking cannot be ruled out.

3. What Impact Will This Have on the Stock Price?

  • Short-term impact: Soosung Asset Management’s stake sale could negatively impact the stock price in the short term. A large sell-off could create downward pressure on the price.
  • Long-term impact: The long-term impact depends on LTC’s fundamentals. If the growth trend in the semiconductor and display markets continues, LTC’s earnings improvement could lead to a stock price increase.

4. What Should Investors Do?

Short-term investors should be wary of increased price volatility. Long-term investors should make investment decisions based on a comprehensive consideration of LTC’s business growth potential, profitability improvement, and changes in the macroeconomic environment. It is crucial to carefully review LTC’s 2025 half-year earnings announcement and monitor the specific performance of its new business ventures and profitability improvement efforts.