SM Entertainment Stock Slumps With High-Profile Lawsuit Looming
Thursday 15 May, 2014 - 02:17pm UTC
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After the sudden revelation that Kris
is attempting to leave EXO and suing SM Entertainment
, stock prices for the company sharply fell as investors were scared off by the scandal.
SM Entertainment's stock opened at 49,750 points. As news of Kris' lawsuit broke and spread, stock prices quickly fell. At the time of publishing, the company's stock experienced a low of 46,500, or a 6.5% drop in price. This represents a decrease in value of 3,250 KRW ($3.17 USD) per stock.
SM Entertainment's stock is at its lowest point over the past month. The company's stock had dipped due to the Sewol ferry tragedy, but was recovering as the music industry came back to life until the latest scandal surfaced.
It is uncertain how much of an affect Kris' lawsuit will have on SM Entertainment fiscally. Overall, the company has performed very strongly, increasing sales by 90
% over the past 3 years and increasing stocks prices by nearly 10,000 points since June of 2013. While the scandal will negatively impact the company in the short term, the long term forecast is likely to remain positive.
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