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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Bruce Long who wrote (1073)	1/18/1998 4:12:00 PM
From: Rational	Respond to of 9980

Bruce: Basically, one could buy the Indonesian ADR Telecom (TLK) listed in NYSE. This is 75% owned by the Indonesian govt and trades at a price in US$ that is almost at par with the Rp value of the stock in Jakarta at the current exchange rate. This is unlike the Korean ADRs which sell for 100% premium. I had posted a long ago on the SKM thread that buying Korean ADRs was not a good idea because those ADR prices assume that won would recover its pre-crash value. I have seen since my analysis that the Korean market has risen 30%, but not the Korean ADRs. There are some who are shorting Korean ADRs and buying the stock in won in Korea to lock in arbitrage profit; but brokers are exploiting investors by charging very high commissions (> 25%) for such trades. Sankar << For a new investor that is interested in converting dollars to rupiahs to invest in Indonesian stocks, how would one go about doing this. Is this something any broker can do or do I have to seek out a broker with Asian ties. Thanks in advanced for your insight.>>

To: Bruce Long who wrote (1073)	1/18/1998 8:26:00 PM
From: Geoff Nunn	Respond to of 9980

Bruce, If you wish to invest in Indonesian stocks, my advice is to stick to Indonesian ADRs - if you can find any. An ADR is a foreign stock (may be 2 or more shares) which is traded in a U.S. market, and is priced in dollars. For U.S. investors there are great advantages to trading the ADR, both in convenience as well as transactions costs. In general, the headaches of trying to buy foreign stocks in an overseas market are great (differences in language, time-zones, legal requirements, foreign currency conversion, payment of dividends in foreign currency, tax reporting, etc), and you must ask yourself if it's really worth it. Unless you can find an ADR to buy, my advice would be to forget it. Good luck! Geoff