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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.
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