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Investing in foreign company - common stock vs depository receipt?
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Nothing. I have learned all the wrong lessons. I'm a long term value investor BUT I actively seek out drama, because that drives prices well into my "zone of safety". 2025 - UNH and KVUE. (Donald) 2024 - UBER (robots) 2023 - RTX and WFC.(Bank panic, turbine failures) 2022 - GE (Split) and BASFY (Ukraine) 2021 - LMT (Funding cuts) 2020 - HAL, NCLH, BRK (March madness) I have no crystal balls but when people start screaming is when I get most interested. Catching the bottom is hard but I don't really need to to make money. I just need to correctly assess whether this is a short term solvable problem or a long term unsolvable problem.
Isn't the EU (more or less) already in a recession? I am no oracle but I have hedged with EU multinationals. One I'd suggest going long on is BASFY. China demand remains weak but it seems like we may be close to done with this Ukraine nonsense and that means cheaper feedstock so energy intensive EU stuff seems like a no brainer If you just want to preserve capital do your bond thing but inflation adjusted returns on that are not great now and will only get worse. Today the green part of the chart is red China and literally Greenland. Unfortunately I have no ludefisk exposure but dividends continue printing
I have investments in a number of foreign based companies relisted on the DOW. BUD, BTI, BASFY, RHHBY. I am unclear if there is an ADR ticker for this one
I agree, the "risk premium" has to be worth it. I own some BTI and BASFY, they're paying 7-8% this year *but* when you look at the price declines it's at best a wash, their profits are down.
If a mature company isn't actively losing money and wants to cut me a 7-8% check every year I don't see that as a bad deal even after the tax implications. They are somewhat harder to manage because the stock performance is largely cyclical (worth less after the dividend date and more beforehand) I have 2 of those (BASFY and BTI) in my portfolio. I can do the math and look at the 52 week graph but it's not as simple as looking at price growth I thought I might be buying growth stocks this year but the ones I've looked at are still too dear. When tech stocks "cratered" 20% down they were mostly still at 20-25 P/E The things I found cheap this year were financials.
BTI and BASFY are my picks. 7-8% like clockwork
3M not going away doesn't make them profitable. I would be more concerned with their lawsuits related to faulty hearing protection (army) They are definitely taking capital losses over it and the market is "pricing that in". If you're looking for another chemical play BASFY is trading at a reasonable multiple.
My inner Frederick tells me these plays will be somewhat cheaper later this year, but who can know for sure? Companies like AAPL being down 25% isnt compelling when they were overvalued by 25% to start with I *want* to like BABA and they have a reasonable story for being down, but China isn't very transparent. It's on my list. Earlier this year I bought into EFX, BUD, GE, BASFY. I think those will print at some point in the future but right now they are just meh. I'm also holding about 1/5 in SGOV waiting for the other shoe to drop. I won't buy DIS because I'm unclear what their "path to profit" is. They are losing money and are projected to continue doing so.
I hold some BTI as well. It pays solid dividends, it's up YTD, but I don't expect a lot more appreciation. My other international holdings are BUD, BASFY, RHHBY That said these are all multinationals so it's just about where they are headquartered really.
I haven't done futures in my Roth (until recently I wasn't aware it was even a thing) but I will disclose that I did 30% margins ~ 3/20 (HAL, NCLH and BRK.B) because those absolutely weren't going to 0 and I knew we were *near* a bottom even if I didn't know the exact moment. In retrospect I wish I'd done more but I wasn't comfortable "gambling" more than I could cover. Other than BRK.B (+70%) it's all been liquidated and my new bets may not be as good (EFX,BUD,LMT,BASFY) but follow a similar pattern (solid companies down for reasons) LMT was my "safe pick" this time around and the jury is still out on the others.
I haven't done futures in my Roth (until recently I wasn't aware it was even a thing) but I will disclose that I did 30% margins ~ 3/20 (HAL, NCLH and BRK.B) because those absolutely weren't going to 0 and I knew we were *near* a bottom even if I didn't know the exact moment. In retrospect I wish I'd done more but I wasn't comfortable "gambling" more than I could cover. Other than BRK.B (+70%) it's all been liquidated and my new bets may not be as good (EFX,BUD,LMT,BASFY) but follow a similar pattern (solid companies down for reasons) LMT was my "safe pick" this time around and the jury is still out on the others.
This is the post, Thanks Larry! Check out tickers **DOW** for us stock and **BASFY.** Both stocks create the absorbent chemical that goes into diapers and pads. ​ Some readings: [https://www.chempoint.com/products/basf/basf-superabsorbent-polymers](https://www.chempoint.com/products/basf/basf-superabsorbent-polymers) ​ http://wwwcourses.sens.buffalo.edu/ce435/Diapers/Diapers.html
I like TX & JBSAY, GRFS & BASFY though risky if gas shut off
I’m 60% in the Activision arbitrage the rest is FNF, BASFY, CWH, GLD, MMM, PFS averaging 5% yield yes I have a paper loss but the $15/share arbitrage will make up for it plus the dividends.
BASFY is a sponsored ADR where 1 ADS is 0.25 of the ordinary. BFFAF is the foreign ordinary. So BASFY will normally be about 25% of the price of BFFAF. There will be some variance based on currency exchange rates, etc. A sponsored ADR will normally have more liquidity than the F share. OTC F shares will also incur additional fees and not all brokers support F shares.
If I was gonna purchase any chemical stock it would be WLK, yea BASFY has a huge dividend but that stock has been performing abysmally, so I might look into why their dividend is so large
Been watching BASFY for a while. They are a chemical producer that is very well diversified in their products. They supply chemicals in tons of industries. Their price tanked this year and has been sitting low. Recently there is renewed investor interest in the company and 10 day avg volume is triple the 90 day avg. I should have bought at 13, but 15 is still cheap. And if I’m wrong, they pay a good dividend and aren’t going anywhere.