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4.3¢ liquefied natural gas limited

LNGLF vs LNGLY, page-8

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sestrooper

263 Posts.

18/10/14

11:51

Post #: 14143852
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Originally posted by sivart ↑

LNGLY are American depositary receipts (ADR's) for LNG.ASX. Owning an LNGLY ADR gives you thee right of exchange for 4 LNG.ASX shares. Think of them as a bank or govt cheque. A bank or govt check isn't cash but it gives you the right of exchange for cash. There is no real financial difference between holding LNGLY vs LNG.ASX, it's more a matter of convenience for people on different sides of the globe. LNG.ASX and LNGLY should generally stay within the 4:1 plus exchange rate range. If they don't then there is an incentive in terms of arbitrage to buy one and convert it into the other to sell at a profit, which would then bring them back into line. As for a link, I don't have one but you can search and read about ADR's. The ASX has the equivalent in reverse, which are called CDR's (Chess depository receipts).

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Okay makes complete sense now! Thanks siv! ! If I Recall correctly, the ADR recently changed their ratio as well. So, if LNG goes ahead and tries to get onto a second market ( the US market), this stock will be a separate one from LNG/LNGLY?

LNG Price at posting: $2.98 Sentiment: Buy Disclosure: Held
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0 Great analysis

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