In an effor tto keep my "handle"…"Lake Charles", I'm sharing some of my blood, sweat, and tears I've shed for this stock. For some of you this info may seem elementary or basic, I apologize. For me, new to stock market, I had to know. I wanted to know why there were three different ticker symbols for the same stock. I wanted to know why the prices were all different. I wanted to know capital gains taxes and rules for cashing in on foreign stock(complex). I wanted to know the diff in purchasing ADR's or Ordinary shares. All this, I wanted to hear strait from the "horse's mouth". So, spending months on the phone and multple emails, a lil food for thought:
Excerpt from email:
"Some investors have bought stock using LNGLF, which is fine, but not endorsed by us.
We did not start LNGLF, although it is our stock, and unfortunately we are unable to cancel it due to regulations.
Our stocks (American Depository Receipts) are sold in USA on OTC market under the ticker code LNGLY.
Below is a bit more information:
Liquefied Natural Gas Limited maintains a sponsored Level 1 American Depositary Receipt (ADR) program with Deutsche Bank Trust Company Americas (Deutsche Bank).
ADR details:
Ticker: LNGLY
Structure: Level 1 ADR
Exchange: OTC
Ratio (ADR:ORD): 1 : 40 (Which has changed to 1:4)
DR ISIN: US53632G1094
CUSIP: 53632G109"
Summary of my findings
- LNGLF is the ticker for LNG Limited in Australia. F= Foreign Stock.
- LNGLY is the ticker for LNG Limited also, but is an ADR(American Depository Receipt) here in US, so there won't be any Foreign Fees. However, the Duetcsh Bank that handles the ADR will charge up to 2% of earning when you cash in. The ADR's are currently 1:4 ratio. One LNGLY ADR = Four LNGLF.
- Magnolia LNG claims they don't own LNGLF, that someone started it, but it is their shares. That's confusing. If and when you sell LNGLF, there may or may not be a Foriegn stock tax. If owners of company shares are mostly United States owned, the tax should not apply. But it does apply, then it could be 7-15% tacked onto your 35% capital gains tax.
Opinion
I'm still not certain which stock is best to own. I like LNGLF, because it's more popular. I think the ADR wasn't user friendly because the average person thought it was more expensive, when theoretically it's the exact same price(in reality it's a few cents different). I don't like the idea of Duetch Bank taking 2% of our money. When serval people from MagLNG tell you "you should buy LNGLY" or "You bought the wrong stock, you need to sell LNGLF and buy LNGLY, because that is the stock we're supposed to buy", that raises some questions. LNGLF had an advantage because of the volume, there seems to be more buyers for the LNGLF vs LNGLY, therefore LNGLF orders go faster. This is important to know if you 're trying to place a Limit Order and with the stock expected to move. I've had LNGF orders go in 5 min vs LNGLY take an hour (side by side) being not many people are trading LNGLY.
Well, I'm anxious to see what Monday brings!
Hope someone finds this info useful, have a good weeken
Thank you sooooo much for this in-depth analysis - I was also intrigued to know the differences, although still a bit confused but a lot more clearer
