I was alarmed by the large loss in portfolio value this morning in my Marketocracy.com account, but apparently
Mechel (MTL) has changed their ADR to share ratio from 3:1 to 1:1. So this effectively creates a 3:1 split - unfortunately it is not showing in the portfolio as such... so fyi, until it fixed the portfolio value will be understated by about $14,000 or 1.1% (i.e. I lost 66.6% on this position overnight, since my share count is the same, but the stock price dropped by 2/3rds). First time I've seen one of these foreign companies do this, to be frank...
- Mechel OAO (NYSE: MTL - News), one of the leading Russian mining and metals companies, announces that effective today it has changed its American Depositary Receipts (ADRs) to its ordinary share ratio from 1:3 to 1:1.
- Mechel's ADRs have been listed on the New York Stock Exchange since October 29, 2004. Each ADR is issued for one American Depositary Share (ADS). From the date of its listing, each ADS represented three ordinary shares of Mechel OAO. However, beginning today, each ADS will now represent one ordinary share of Mechel OAO. To implement the ratio change, two additional ADRs were issued for each ADR after the close of the market on May 16, 2008.
- The decision to change the ratio of Mechel's ADRs to its ordinary shares was adopted by Mechel OAO's Board of Directors with the intention to increase liquidity of Mechel's ADRs, bringing its price to more customary market standards.
Long Mechel in fund and personal account
4 comments:
Are you looking at going back to the inflation/weak dollar plays at this point?? i.e. Buying currency plays (like FXE) or perhaps revisiting gold? If equities sell-off, the money has to flow somewhere.
P.S. Gold prices seems to be firming up, attempting a breakout above the 50-day. Another headfake like the past 2 attempts?
I am not looking to buy anything but yes gold would be a good option if people finally come to the conclusion that inflation is real.
Some time frames I'd rather focus on not losing money than trying to chase into things wildly looking for some upside. In serious corrections even the gold stocks fell. But yes, all things being equal GLD would be attractive.
ARGH Scottrade did this to me as well. Hope they fix it soon. This is real money here. :)
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