I want to buy one and still (after reading the posts) do not know which to buy.
Can a few people please simply say LYSCF or LYSDY? I don't understand all the explainations!
Thanks! I want to buy on Monday so any help is appreciated!
May i make a suggestion to you.
You post that "she' is possibly connected to the Fister Klan, be that as it may, take a moment to look at the awesome good that came out of "her' post.
Look at what Toly
(big props to Toly, by the way) has explained in great intelligent detail, so that we can gain info and understand more about the recent happenings to lynas stock.
perhaps you can control your relentless attempts at exposing the dark side of the force, and sit back and examine the good in what some folks post.
Just a suggestion.
THANK YOU to everyone who answered my post. I appreciate this. I am 18 yrs. old in the "learning stages". I saved some money (not much!) and want to buy a REE stock but cannot afford the high priced ones so thru some "research" i found this!
I thank all of you for your help!
but be appreciative of Toly's good efforts to educate us. Mining is fraught, a supreme
example being the penny gold mining companies. Lynas has been going at this a good
many years and regardless of its record, experience counts, especially in this industry.
I'm wondering if we should be more concerned about the size of the float and whether it might
inhibit upside potential.
ZP, Rich is right although I think he has a fat finger... LYSDY is the preferred purchase (Not LYSKY :~))... The simple answer is that if I were to buy shares I would now purchase LYSDY... It represents actual shares and has all of the privileges of the underlying security such as voting and dividends (important in the future)... Also there is no foreign stock exchange fee (typically $50) charged by SOME brokerage houses for the ADR LYSDY... If someone can verify this I would appreciate it... I have accounts at 3 online brokerages (AT, ET and ST) and none of them charge the fee for LYSCF although Vanguard on-line does charge it...
OK, here is where we are; From what I understand, an OTC stock can be an ADR, but it is not necessarily and ADR... If it is an ADR (like LYSDY) then it has the same privileges as the underlying security LYC... Also, it can still be traded OTC as a ADR... On the other hand since LYSCF is not an ADR and is a financial instrument then it does not represent actual shares, thus is not entitled to voting rights or dividends...
Take a look at options... An option is a financial security (or derivative) that gives the holder the right to buy (or sell) shares of a given security at a certain price... In practice it would appear that the option holder owns the security and would be entitled to all voting rights and dividends associated with the security... Not true, the person who writes the call or put still owns the security and all of the privileges... The option holder just "controls" the underlying security...
Now, look at a shorted stock... Since the shorter has "borrowed" shares and sold them, the shorter is responsible for paying dividends to the shareholder he borrowed the stock from... It is confusing but makes sense, as the borrowed shares have been sold, and the actual shareholder is entitled to dividends. The dividends must come from somewhere that being the shorter... That is why shorting is much harder and occurs less frequently with high dividend (high yield) stocks...
I am going to try and get some more information on this subject but this is how I understand it at this point...
Oh yeah, with respect to the arbitrage, successful arbitrage is completely subject to liquidity of a given security... To complete a successful arbitrage there must be as much supply on the bid side as there are on the ask side of each security (the exact stock typically traded on different exchanges)... This can be viewed to some degree using level II but that is not always accurate as the MM's have the ability to manipulated to bid and ask... A good example of this is when the submission of a buy (or sell) order is submitted as an "all or none" the MM will hold off posting the order until the shares become available and are posted... By the time the order is executed of course it never shows up on LII but can be viewed on the time and sales record...
On note of caution, I have found that arbitrage opportunities seldom exist as the arbitrage is typically recognized and executed by computers using algorithmic trading.. The trade is performed automatically and takes advantage of small differences (i.e. $.005)... That is why on occasion the bid, ask or trade appears as a fraction as opposed to a whole number... These computers are set up to make fractional trades and execute them instantaneously (a lot faster than I can do with my fat finger ;~)... Then there are the HFT's or high frequency traders that execute similar to the arbitrage but take advantage of very small movements in a price share... This generally provides liquidity to a security (that's the argument anyway) but requires a lot of volume to be able to "hide" a transaction in the total volume...
Hope this helps... This is my understanding and if anyone has anything to add or correct, please do so...
Schwab seems to charge me a little less commission. Otherwise the two are the same. Buy the one that's trading somewhat less if you want to arbitrage, but in my case I like the ADR because someday I may want to sell at the lower commission.
In my opinion, they're equivalent and it doesn't make much difference. I think you go with price and volume. Specifically, the one that is selling at the lowest price determines how many $ you must commit to the position. Regarding volume, the higher trading volume gives you better liquidity. The volume is higher with LYSCF. So I think that is the first choice unless the ADR LYSDY happens to be trading at a lower price when you place your order. So I think the choice is for LYSCF unless LYSDY happens to be lower in price. At today's close, price was equal for the 2 shares. Just my guess.
I think the message
board will agree (or
disagree) that the ADR (LYSKY.PK) is recommended. Lynas
has ten listings which I suppose represent
listings in various countries. It's all
about promoting the stock.