According to foreign filling, Seth Klarman’s Baupost Group bought $30m of seth klarman photoSAMCHULLY CO LTD, a South Korean nat gas. company on 1/12/11.

Below is a brief profile:

Samchully Company Limited operates in the Natural gas distribution sector. Samchully Co., Ltd. is a Korea-based company principally engaged in the provision of urban gas. The Company mainly supplies liquefied natural gas (LNG) to residential and commercial customers in Incheon City, Suwon City, Bucheon City, Anyang City, Yongin City, Anseong City, Pyeongtack City and others. The Company is also engaged in the integrated energy supply business which supplies heat or both heat and electricity from more than one integrated energy production facility to users in residential, commercial and industrial areas; the compressed natural gas (CNG) recharging business, which operates Incheon CNG recharging station and other stations in Korea, as well as the new and renewable energy business, which operates Hampyeong photovoltaic power plant and others.

Recent stock price:

Stock Performance Chart for Samchully Company Limited

 

Below is a chart of some valuation ratios from BBG:

This looks like a cigar butt dirt cheap stock. P/S 0.1, P/B 0.4, P/E 4. This is a cheap play on natural gas, possibly on the assumptions that the oil/gas ratio will revert closer to the mean, as nat gas becomes more expensive. This seems highly unlikely, but it could be a contrarian play.

Furthermore, although EPS has dropped for the past year, the trend of revenues and earnings has increased over past few years:

Yearly View
Item    2006    2007    2008    2009
Sales
Cost of Goods Sold
Gross Profit
SG & A Expense
Operating Profit
Non-operating Income
Non-operating Expense
Recurring Profit
Extraordinary Gain
Extraordinary Loss
Earning Before Income Tax
Income Tax
Net Profit
857,541
736,196
121,345
84,795
36,550
16,975
14,460
39,065
0
0
39,065
12,776
26,289
1,125,250
994,352
130,898
94,977
35,921
14,795
8,651
42,065
5
497
41,573
13,406
28,167
1,112,893
959,423
153,470
105,161
48,309
12,791
10,084
51,016
0
0
51,016
15,681
35,335
1,258,963
1,084,031
174,932
118,494
56,438
29,531
9,438
76,531
0
0
76,531
23,480
53,051

Even if natural gas doesn’t increase in price, the company seems to be growing nicely, while the price has only been falling.

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Disclosure: None