Before deciding to play the arbitrage game, one should consider several things. The AU$<->US$ exchange rate quoted is the wholesale rate. i.e. it is not the rate the you nor I get when buying and selling foreign currency. We could probably add another 5%-10% to the cost of the trade. There also may be taxation implications to consider. In the time it takes to convert shares to ADRs and vice versa, could see large movements in the share price or currency exchange rate.
Just be careful. There is no pot of gold at the end of the rainbow.
--Dan
SSN Price at posting:
3.2¢ Sentiment: Hold Disclosure: Held
