Registered Members Login:
   
Forgotten Your Details? Click Here To Recover +
Welcome To The ShareCafe Community - Talk Shares And Take Stock With Smart Investors - New Here? Click To Register >

4546 Pages (Click to Jump) V  « < 209 210 211 212 213 214 215 > »    
 
  
Reply to this topic

CUV, CLINUVEL PHARMACEUTICALS LIMITED
qpr
post Posted: Mar 7 2019, 12:22 PM
  Quote Post


Posts: 50
Thanks: 21


In Reply To: johnnytech's post @ Mar 7 2019, 12:14 PM

I am referring to a situation where a us investor has converted us $ to aud and has effectively locked in his exchange rate when he sells on the asx and converts proceeds back to usd at whatever rate at that time

 
johnnytech
post Posted: Mar 7 2019, 12:14 PM
  Quote Post


Posts: 395
Thanks: 722


In Reply To: qpr's post @ Mar 7 2019, 08:17 AM

QPR, the two risks you specify are not mitigated by holding Clinuvel in the CLVLY variant compared to the CUV variant. If the CUV stock price remains steady with absolute zero change over 15 days. But the exchange rate goes up and down over those 15 days, the CLVLY price will change as well to reflect that up and down motion of the exchange rate. And this happens separate of retail investors.

How does this work? The reason is because the originating investment house behind the ADR initial public offering has the privilege to arbitrage the stock. They can remove share numbers of CLVLY from American market and shift to Australian market until the stock price comes inline where it makes no financial sense to do so. This of course happens both directions. This is allowed by design, and only to the originating investment house that did the initial public offering, to keep the ADR price in precise motion with the Australian price, inclusive of the exchange rate.


Said 'Thanks' for this post: hibchibbler  xlnja  
 
royco
post Posted: Mar 7 2019, 10:09 AM
  Quote Post


Posts: 2,889
Thanks: 4414


And the best thing is cuv have zero debt and only <50 !
million shares to divide the revenues over the lucky holders.
Revenues set grow over the next 10 years.
Cuv will be gathering multi billion revenues over the years.
How much you want to put on the table to get your share?



--------------------
Ἀρτεμίσιον
 
royco
post Posted: Mar 7 2019, 10:09 AM
  Quote Post


Posts: 2,889
Thanks: 4414


And the best thing is cuv have zero debt and only <50 !
million shares to divide the revenues over the lucky holders.
Revenues set grow over the next 10 years.
Cuv will be gathering multi billion revenues over the years.
How much you want to put on the table to get your share?



--------------------
Ἀρτεμίσιον
 
qpr
post Posted: Mar 7 2019, 08:17 AM
  Quote Post


Posts: 50
Thanks: 21


In Reply To: Klomp's post @ Mar 7 2019, 06:32 AM

The value of any overseas investment will vary when you mark against the currency you converted from. Once you convert to another currency you take on two risks - the value of the investment itself and the exchange rate movement as you have locked that in once you converted. If you have purchased ADR's and your functional currency is USD then you are not subject to the second risk, If you have converted USD to AUD and purchased CUV shares ex ASX then you are subject to the second risk. My question is why would you do that when ADR's are available ==> that is one reason Aussie list ADR's for US investors.

In either scenario you are quids in just not as many quids if you have taken second option and converted USD to AUD when you convert back to USD once you sell.

 
xlnja
post Posted: Mar 7 2019, 07:26 AM
  Quote Post


Posts: 48
Thanks: 84


In Reply To: Klomp's post @ Mar 7 2019, 06:32 AM

The AUD/USD exchange rate is reflected in the ADR price. I've been monitoring CUV converted to USD against CLVLY for many years, and the price moves in lock step with the exchange rate factored in.

 


Klomp
post Posted: Mar 7 2019, 06:32 AM
  Quote Post


Posts: 188
Thanks: 104


In Reply To: xlnja's post @ Mar 7 2019, 05:27 AM

I don't think the depreciating AUD should have any impact on the USD price (at least if the market was efficient). The revenues of the company are in Euro. And soon to be Euro and USD. What's relevant for the AUD price is the AUD / Euro exchange rate. What's relevant for the ADR is the Euro / USD exchange. If the Aussie dollar depreciates and nothing else changes, you should probably find the AUD price goes up, but the ADR price stays still.

 
juxtaposer
post Posted: Mar 7 2019, 05:55 AM
  Quote Post


Posts: 135
Thanks: 170


CUVs Twitter feed has announced....

We are experts in optical physics and aspire to create an ideal #environment for future generations.
Therefore, over the next five Wednesdays, we are delving into renewable energy powered by sunlight.

Stay tuned to learn how #SolarPanels work!

#CLINUVEL #EcoWednesday”



Said 'Thanks' for this post: johnnytech  
 
xlnja
post Posted: Mar 7 2019, 05:27 AM
  Quote Post


Posts: 48
Thanks: 84


In Reply To: marmas's post @ Mar 7 2019, 01:54 AM

The exchange rate drop has been annoying. The bulk of my shares were purchased with an average AUD rate of .90...so the current AUD rate of .70 represents an over 20% drop in the ADR price due to exchange rate variance. grrr.gif

 
marmas
post Posted: Mar 7 2019, 01:56 AM
  Quote Post


Posts: 47
Thanks: 26


Sorry 10k loss per million not 1pk



--------------------
Hopefully nervous
 
 


4546 Pages (Click to Jump) V  « < 209 210 211 212 213 214 215 > » 

Back To Top Of Page
Reply to this topic


You agree through the use of ShareCafe, that you understand and accept the TERMS OF USE.


TERMS OF USE  -  CONTACT ADMIN  -  ADVERTISING