tag:blogger.com,1999:blog-2986124651030959736.post1507269121046691490..comments2024-03-28T09:42:38.695-05:00Comments on Stocks, Bonds & Politics: International Trading and Currency RisksTENNINDEPENDENThttp://www.blogger.com/profile/17444227958539559639noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2986124651030959736.post-43942725182972114582010-11-17T12:57:26.523-06:002010-11-17T12:57:26.523-06:00Thanks for the information on how shares are price...Thanks for the information on how shares are priced on Israel's exchange. I do occasionally buy their companies and own a couple now. <br /><br />I suspect that the grey market listed shares are the ordinary shares. Generally, the pink sheet exchange will tell you whether the shares are an ADR and then provide the conversion rate. In the case of MAXIF, the listing just says ordinary shares. I would equate that with the Israeli shares so there should be good tracking in a liquid market. The Grey Market is not a liquid market by any stretch. <br /><br />When I buy Canadian stocks, I will generally buy them directly on the Toronto exchange using Canadian dollars. One such security, since sold, is a company called Viterra, now trading at 9.35 CAD on the Toronto exchange. It has a listing on the pink sheet exchange under the symbol VTRAF with the reference "ordinary" shares. The last trade at that exchange was $9.09 USD and that is close to the Toronto price using the current exchange rate. <br /><br />The pink sheet listing for Roche, another security that I have bought on the pink sheet exchange, has the symbol RHHBY. The pink sheet exchange clearly calls this one an ADR with a ratio of 1 ADS=.25 ordinary.TENNINDEPENDENThttps://www.blogger.com/profile/17444227958539559639noreply@blogger.comtag:blogger.com,1999:blog-2986124651030959736.post-83639083376392435472010-11-17T12:42:19.034-06:002010-11-17T12:42:19.034-06:00I want to thank you for your response.
Just to pu...I want to thank you for your response.<br /><br />Just to put a bow around the M.A. Industries part of these comments. Isreali stocks are listed in the "New Isreali Shekel" (.01 NIS) denomination, hence the price listed as 1825 on 11/16 is the equivalent of 18.25 shekels (18.25 shekels multiplied by an exchange rate of .2721 = $4.966/shr for those foreign shares listed on the pink sheets). <br /><br />At an offer price for the company of $2.72 billion dollars and 459.26M outstanding shares, it seems the share price of those foreign shares could move to $5.92 assuming the deal goes through at that price. However, this is a moot discussion as the price seems to be tracking efficiently at this point.<br /><br />My question was motivated around whether those foreign shares (as opposed to the ADR) listed/traded on the pink sheets were pegged to shares, or actually ARE the shares listed on the Tel Aviv stock exchange, or whether some mispricing could take place of those foreign shares due to the illiquid nature of the exchange they're traded on. I now believe those foreign shares designated MAIXF ARE the shares traded on the TA stock exchange.<br /><br />Thanks again.Unknownhttps://www.blogger.com/profile/04353197462456757440noreply@blogger.comtag:blogger.com,1999:blog-2986124651030959736.post-41751042172785395082010-11-16T22:00:28.994-06:002010-11-16T22:00:28.994-06:00I read about this acquisition but am not familiar ...I read about this acquisition but am not familiar with the company. I do know that the grey market is totally lacking in any transparency. The bid and ask quotes are not disclosed. If you enter an order to buy 100 at $5, it could be sent to a broker who does not display it. There are no market makers. A order to sell 100 by another customer then might get filled at 4.5, even though you have the better offer, just because it is sent to another broker and matched only with their best bid. <br /><br />I do not recall the post that you are referencing. I discuss in several posts how currency exchange impacts the pricing of ADRs and the foreign traded shares priced in the local currency. It does not matter whether you buy the ADR or the foreign shares directly, both should be priced the same for the U.S. citizen buying with USD, unless there is a serious and usually temporary mispricing issue, which I have seen occasionally. I believe that I saw it with the pink sheet listed AXA shares once. http://tennesseeindependent.blogspot.com<br />/2010/06/bpsold-100-of-etf-veu-at-386bought-100.html<br /><br />Most of my discussion in this area focus on buying foreign companies when the share price has fallen significantly and the U.S. dollar is relatively strong against the currency in the host market. The buy of AXA would be an example. <br /><br />I looked at MAIXF and did not see whether there was a 1 to 1 conversion with the shares traded in Israel. If I was going to trade this, and I will need a far, far, far more powerful incentive than this to try and execute a trade on the grey market, I would start by being certain what those MAIXF's shares represent in relation to the Israel traded shares. If I have the right company, the Israel shares use the symbol <br />Main.TA at reuters closing at 1825 on 11/16. I do not see how that connects back.TENNINDEPENDENThttps://www.blogger.com/profile/17444227958539559639noreply@blogger.comtag:blogger.com,1999:blog-2986124651030959736.post-77569982411831649432010-11-16T20:34:06.286-06:002010-11-16T20:34:06.286-06:00I seem to recall a post in which you discussed dif...I seem to recall a post in which you discussed differences between grey market ADRs (e.g. wxyzy) vs. foreign shares (usually designated abcdf). I've been unable to find that post but if you recall, please post link if you wouldn't mind.<br /> <br />The Isreal fertilizer/chemical company M.A. Industries has two Yahoo Finance symbols maixy and maixf and China Chemical offered 22.7 shekels a share. At a conversion rate of .2721 and assuming the deal goes through, maixf could be around 6.18/shr in USD. It was trading around 4.80 a couple days ago and hardly has any volume. It moved to 5.08 today but has almost zero liquidity. <br /><br />At any rate, my main motivation for this post was to see if you recall your discussion of foreign shares bought on American exchanges vs. ADR's. <br /><br />Thanks,<br />LuteUnknownhttps://www.blogger.com/profile/04353197462456757440noreply@blogger.com