Shares of NCsoft, a South Korean video game developer, are currently being overlooked by the market and are up for grabs at a "very cheap" price, according to Schroders fund manager Vera German. While NCsoft shares are only traded in South Korea, they are accessible to U.S. and European investors through ETFs. NCsoft accounts for 3.41% of the Global X Video Games & Esports ETF and 4.1% of the Global X Video Games & Esports UCITS ETF .
"When we started looking at it, one of the first things that struck us was that the shares were very cheap." What will push shares higher? The value investor believes that NCsoft is well-positioned for future growth. The company's balance sheet includes net cash of 1.5 trillion South Korean won , and its cash flow generation has been strong. German also sees opportunities for NCsoft to improve its margins, which — in the low double digits — lag behind its closest peers in Korea.