I have been watching the US market trading with great interest, the share price is straining to rise but is being limited by the Australian market. Let me explain…
The US market currently trades two securities with regards to Lynas, one is LYSDY a direct one to one ADR, meaning Mellon Bank went to Sydney and bought a few million shares of LYC, then took them back to New York to put them up for sale on a secondary (or tertiary?) market. To the best of my knowledge LYSCF is based on a derivative which is not one to one but is backed by a major bank…
OK, here’s the deal, the present (US/AUD) currency exchange is very close to .75 so any Aussie stock trading at $4AU will have an indicated price of precisely $3.00 US. This basically “clamps” the US price to the Aussie price (LYC is the underlying security) leaving equality to the arbitrage (market players that take financial advantage of small inequities in the market)…
In the US the LYSDY shares will generally trade near or at the indicated price. The indicated price is the closing Au share price after currency compensation. Lately, LYSDY has been trading at a premium to the indicated price, sometime as much as 10 to 15 cents (or 5%) higher @ $3.16. One gets the distinct impression that once the clamp on the share price is eliminated with global trading we could see a significant shot to the upside…
I trade a bit and keep a pretty close eye on the price and volume of a few stocks… With Lynas it would appear that this is a new phenomena something that has emerged recently with the rapidly increasing volume (US) but IMO it points to a very excited US market…
My point? A US NASDAQ listing is surely under consideration and it is my guess it will be announced at some point resulting in significant upside market activity. It is inevitable. US investors love interesting stocks as evidenced by the above disparity, but when the fundamentals underlying any particular equity are as strong as Lynas that excitement will spread very quickly… Good time to be a Lynas shareholder… JMHO…
The case for the NASDAQ...
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Last
$6.56 |
Change
0.090(1.39%) |
Mkt cap ! $6.131B | |||
| Open | High | Low | Value | Volume |
| $6.53 | $6.58 | $6.51 | $14.95M | 2.285M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 1500 | $6.54 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $6.56 | 6919 | 1 |
View Market Depth
| Last trade - 16.10pm 03/05/2024 (20 minute delay) ? |
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Last
$6.55 |
Change
0.090 ( 1.39 %) |
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| Open | High | Low | Volume | ||
| $6.53 | $6.58 | $6.51 | 732559 | ||
| Last updated 15.59pm 03/05/2024 ? | |||||
| LYC (ASX) Chart |