In the 80ies American banks issued so called American Deposit Receipts (ADR) in Bougainville Copper (ISIN: US1013952007) - one ADR represented one original BOC share. Recently this ADR program in BOC had been cancelled to the end of January 2010 and ADR trading in Bougainville Copper was stopped in New York and Francfurt last week.
The European Shareholders of Bougainville Copper (ESBC) have information that JPMorgan for example issued round about 4 million ADRs. In reality they only have 2 million in custody. Therefore JPMorgan may soon be urged to buy BOC shares massively within the next weeks and months if each ADR holder insists in his right that his ADRs must be changed into original BOC shares.
So, all holders of ADRs concerned should immediately exchange their ADR securities into original BOC shares! This will increase the pressure on the ADR issuer's significantly.
In such a tight market like Bougainville Copper Ltd a very strong rise in BCL share prices within the coming weeks is probable. It can be assumed that the other banks (Citicorp, Bank of New York Mellon, German Bank, etc.) that have issued ADRs in Bougainville Copper as well, are also short in BOC shares. The ESBC believe that all ADR banks might be short up to 40 million shares in total!
In this case, this could even mean that the huge increase in BOC share price would be the result.
BOC Price at posting:
57.0¢ Sentiment: ST Buy Disclosure: Held
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