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Russian ADR's blocked

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369

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Apr 10, 2021
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#1
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All russian ADR's are blocked which caused a big drop in prices.So no retailer can buy these cheap stocks but prices are moving back up and there are buyers.
So i guess you need to be in their club to be able to buy these cheap stocks.

Fucking assholes

Anyone has still an option to buy russian ADR's/Stocks ?
 
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#2
369 said:
All russian ADR's are blocked which caused a big drop in prices.So no retailer can buy these cheap stocks but prices are moving back up and there are buyers.
So i guess you need to be in their club to be able to buy these cheap stocks.

Fucking assholes

Anyone has still an option to buy russian ADR's/Stocks ?
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Most of these Russian ADR's and GDR's will get delisted anyway. Furthermore, neither an ADR nor a GDR is a stock. It is what it says: A depositary receipt.
 
#4
sonato said:
Is there any money to be made with ADR's now they are getting delisted?
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In general there is: Once an ADR/GDR gets delisted there are usually many small investors who are unable to sell. That is the time when a deep-pocket (professional) investor could make an offer to buy these delisted ADR's at a heavily discounted price, exchange them for the original stocks (every ADR has a fixed ratio "ADR per stock"), then transfer the original stocks to a broker in the country where the original stocks are traded and sell them there on the local stock market.

The above is actually common practice. However, with Russian ADR's it might not work due to sanctions + the fact that currently the Central Bank of Russia prohibits foreigners to sell any Russian equity.
 
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#5
Bagpacker said:
Most of these Russian ADR's and GDR's will get delisted anyway. Furthermore, neither an ADR nor a GDR is a stock. It is what it says: A depositary receipt.
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who cares if they get delisted.Its represents a share and gazprom lukoil will keep making profit and still have all resources like before.Once MOEX opens again i'm sure they are going back up but we won't be allowed to invest in them anymore
 
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#7
369 said:
who cares if they get delisted.Its represents a share and gazprom lukoil will keep making profit and still have all resources like before.Once MOEX opens again i'm sure they are going back up but we won't be allowed to invest in them anymore
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That might be the case if you hold paper but there is no more paper.
 
#8
I spoke to my broker about this topic early in the week. I spoke to the global trading desk. They explained that the best (imperfect) analogy were the Chinese companies that were de-listed from U.S. stock exchanges by Executive Order (first by Trump and then later renewed by Biden). That was several years ago and the broker is still waiting for further guidance.

Investors continue to hold and own those stocks, but they cannot trade them. So, the issue becomes how the divestment eventually occurs. The two most likely outcomes are liquidation on behalf of the client or simply removal from the books without recompense.

It is an imperfect analogy, because ADRs and GDRs pose an even bigger problem because you do not actually own the underlying stock. For example, an ADR represents one or more shares of foreign-company stock held by that bank in the home stock market of the foreign company. In this case, Russia. That obviously poses many problems, including Russia possibly ordering its banks not to recognize any GDRs, as a form of payback against the West.

It is also an imperfect analogy, because the Chinese companies were found guilty of spying, which is the primary means by which China gains access to technology. In the case of the Russian companies, they themselves are not guilty of breaking any laws. The sanctions target Russia itself. So, if you can buy Russian stocks directly, and are willing to hold onto them for several years, it could work out. Especially if you can place them directly in your name, versus holding them in the street name.

As already noted, GDRs and ADRs pose bigger problems. The UK stopped all trading of Russian GDRs yesterday or today. Many brokers in the U.S. stopped trading Russian ADRs over the last few days.

With great risk comes great gain.
 
#17
EuroKiss said:
I’d likely invest in Gazprom even if traded in Angolan stock market! rof/%
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Well, from an economic point of view it would probably be an excellent investment.
However, check first if you are still allowed to buy any Russian stocks. Financial sanctions are already in place since 2014 which are applicable to private individuals, too. Check first if/what/how these have been amended and how you are affected personally. Otherwise your investment might bring you into big trouble.
Let us know what you find out.
369 said:
Any good broker outside of EU which offeres trading in Bejing ?
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Your only bet would be tiny brokerage companies in Hong Kong (aside from mainland China) who only trade on local markets. Even in HK no reputable broker will touch Russian equity due to fear of getting blocked from trading on Western markets. Singapore and South Korea joint the sanctions regime over the weekend which closed many alternative options.
But then again: Even if you find somebody willing to buy that stuff for you, check first if you are still allowed to trade any Russian equity!

Note: Investing behind enemy lines is a dangerous game. Better think twice!
 
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