They chose financial independence over home ownership.

This is somewhat extreme but watch how this Canadian couple chose financial independence over home ownership.  They are in their 30s and,...

Past blog posts now load week by week. The old style created a problem for some as the system would load 50 blog posts each time. Hope the new style is better. Search archives in box below.


"E-book" by AK

Second "e-book".

Another free "e-book".

Pageviews since Dec'09


Recent Comments

ASSI's Guest bloggers

Yongnam: The ADR effect!

Wednesday, January 9, 2013

In October last year, Yongnam had a roadshow for overseas investors. In that roadshow, it was revealed that they were getting their shares traded as ADRs in the USA. This has happened and their ADRs commenced trading on 8 January 2013.

"This market platform will allow Yongnam shares to trade more easily on an international basis, enable the Company to diversify its shareholder base, encourage trading liquidity, and improve access to new capital markets." (Yongnam)

Mr. Market certainly likes the news!

If 26.5c should be taken out, then, I see 28c as the next resistance level to watch with 29c as a much stronger resistance which could be tested under very bullish circumstances.

Of course, we can only wonder if share price would go even higher tomorrow or the day after.

What are ADRs?

ADR stands for American depositary receipt and it is a stock that trades in the United States but represents a specified number of shares in a foreign corporation. ADRs are bought and sold on American markets just like regular stocks, and are issued/sponsored in the U.S. by a bank or brokerage.

ADRs were introduced as a result of the complexities involved in buying shares in foreign countries and the difficulties associated with trading at different prices and currency values. For this reason, U.S. banks simply purchase a bulk lot of shares from the company, bundle the shares into groups, and reissues them
(Source: Investopedia)

Related posts:
1. Yongnam: Worried about warrants?
2. A Christmas collection of charts.


Tom said...

Hi AK,

How long it take for the book to deliver to us from betterworldbooks?


AK71 said...

Hi Tom,

If you have placed an order with them, you could check your order status here: Check order status.

AK71 said...

Hi Tom,

This could be helpful:
Delivery time range.

AK71 said...

DELTA LLOYD ASSET MANAGEMENT on 24 April 2012 bought 14,765,000 shares at 25c a piece.

On 26 December 2012, they bought another 800,000 shares at 24c apiece.

They now hold 76,142,000 shares or 6.03% of all shares in issue.

Delta Lloyd Asset Management is an independent asset management company within Delta Lloyd Group. They manage the assets of the insurance companies of Delta Lloyd Group.

AK71 said...

Why does Delta Lloyd Asset Management invest in Yongnam?

Sturdy undervalued
Given the excellent track record of Yongnam and good long-term relationships that the company has built with developers, the company is regularly approached by customers to jointly access new markets. Cooperation with major developers has the additional advantage that, when end customers credit problems like in Dubai in 2008, Yongnam still get paid. Yongnam According to Wu therefore firmly undervalued. "The market value of the stutsystementak is much higher than the carrying amount of those assets. Addition Yongnam a healthy order book and the company has its dividend recently increased. That fits perfectly with our investment style. We are confident that the market Yongnam in the course of time also will appreciate.

The above is a translation taken from Delta Lloyd's website. Not perfect but you get the idea. :)

Delta Lloyd on Yongnam.

Monthly Popular Posts

Bloggy Award