Hello Wallace:
I've never looked for feedstock prices. As far as oil goes,
what very little I do follow, I use the XOI (the S&P oil index)
as a gauge. It has been some time since I followed oils. My own
rule of thumb (which is just that, a rule of thumb, and thumbs
are not known as good investors <g>), is I get interested in the
oils when their dividend yield gets close to the 91-day T-bill rate.
Casual observance leads me to believe that at those levels, the oils were a buy.
Regarding ADRS & ordinary shares, I too prefer ADR's if given a choice. Unfortunately, many of the companies I like do not offer ADR's. If I like a company, I'll check to see if it has an ADR. If
it doesn't, I'll still buy it. I have been told by New York Traders
that regardless of what firm you initiate your trade through, the majority of ordinary shares are held in Hong Kong by Merrill Lynch. (Or Smith Newcourt, which is a subsidiary of Merrill Lynch.) Call it a leap of faith if you will, but I cannot envision Merrill Lynch flushing the billions they have spent building their reputation down the toilet by announcing that they have "mis-placed" or "lost" all of the foreign ordinary shares that they were entrusted with. <g>
In my 13 years of buying HK shares, I have never had one dispute over
a dividend, shares owned, etc. . As I have said before, IMO, it is
one of the fairest markets on earth for the little guy like me.
Best Regards,
Doug |
