The correction in differentials was troubling for a long time. I could not get my head around why there was such a premium on NYSE BKIR shares. I suspect many of the posters here feel the same.
I think that if there was an arbitrage opportunity (and someone suggested that it was not the case a while ago) someone was making an absolute fortune on the difference between the two trading bases. If I bought shares in Europe (use LSE for example) and sold them on NYSE there was almost a 10% differential at times.
Now I think you would have to be a trader to do this. I don’t even know if it is possible, but I do know that this share performs better when there is a parity in share price (relative to exchange rate and taking into account the fact that BKIR NYSE is sold effectively in consolidated block units of forty, making the translation equation from Europe to USA look like this Europe share price = ((NYSE PRICE/40)/exchange rate), and I think that has to do with clarity and transparency but I am not and expert by any stretch of the imagination).
When there is a close correlation between the two prices (there can be a differential if one market is closed and the other market is open and either rising or falling) there is much more transparency and therefore it is easier to track performance.
If we see an RNS this morning then my theory about correction is entirely incorrect. If not then yesterday's sell off was a correction of disparity between US and Europe bkir share differential. But if that is the case then it is a necessary and important event as it removes what was a puzzling difference between the traded SP on both continents, thereby reducing uncertainty.
Wr referred to the time element i investing. That was the thing that rang in my ears.
It is all about time and the time value of money, it is the only tool that the small men and women have to challenge the big cats with alas however I hope that we are not old men and women with walking sticks and beards down to our navels by the time this hits 50 cent.
Time is a precious thing.
We will see a rise in about 2 to 3 weeks I predict as a performance pattern is emerging.
I'm off now for a while so sons, be good and do not fight or argue like children.
Thanks for the YouTube video insight to W.Ross strategy on BOI. I especially like WR's recount of the his equity company getting back the original investment in the bank for the sale of just 1/3 of the shares. He seems to relish the prospect as a Director, of dealing effectively with the 'house' money, absent his original investment and expressed no interest in cashing in some more in the foreseeable future. I had been chasing a prospect of serious topping-up in the bank at .255 for some time and achieved that this morning. Good luck all.
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