Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Hi James & Team, In your note this morning 25/10 you mention BHP ADR rose US$ .60 . When I compare with the pricing in Com Sec They state BHP ADR as Us$56.22 rose 2.5% US$1.37 . Why the difference? Second Question MFG . Is the outgoing CEO being held responsible for the continue outflows of FUM? Thanks for your continuous daily reporting
Hi Christof,
The ADR you get from Commsec is the change from US session to US session in $US terms, whereas the 60c we quoted is the $A difference between where the stock closed at 4pm on the 25th and where the it was poised to open basis its US close taking into account any currency changes through the session. i.e. we’re discussing the likely overnight change (gap) in the price in BHP on the ASX using the ADR’s as a guide.
In terms of Magellan (MFG) we believe a number of people are getting the blame, both past and present, for the outflows of FUM at MFG but the main culprit is underperformance, if/when they turn the corner on this front FUM is likely to follow suit. Chairman (and interim CEO now) Andrew Formica was brought as part of a refresh of the board in July. His experience and fresh eyes on the company could prove valuable in an improvement in operations.
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