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ADR Daily Report (Yahoo Finance) | The Market Mavens Report: Global Markets
| Issue | CUSIP | Exchange | Symbol | Ratio* | Industry | |
| CRISPLANT INDUSTRIES A/S 144A | 226710101 | 144A | CRPNYP | 3: | 1 | MAC |
| DEN DANSKE BANK | 248206203 | OTC | DEAFY | 1: | 1 | BKS |
| NOVO NORDISK A/S | 670100205 | NYSE | NVO | 2: | 1 | DRU |
| TELE DANMARK A/S | 879242105 | NYSE | TLD | 2: | 1 | TEL |
| TELEPARTNER A/S | 87944B101 | NAS | TPARY | 1: | 1 | TEL |
| TELEPARTNER A/S WARRANTS | 87944B119 | OTC | TPARWY | 1: | 1 | TEL |
| UNIDANMARK A/S 144A | 904664109 | 144A | UDNGAY | 1: | 1 | BKS |
| * Ratio: You'll probably notice a significant difference in price
of the stock, traded as an ADR and on its home exchange. You can easily
calculate an over- or undervaluation (and, of course, a fair valuation). All
you need is the ratio of ADR to stock, as listed in the table above, and the
exchange rate of the US-Dollar to this country's currency. The following,
generalized example explains how to calculate. On June 26, 1998, the Swiss ADR Sulzer Medica, with a ratio of 10:1, was priced USD 24 7/8. In Zurich, its home exchange, Sulzer traded at 379 Swiss Francs. The Dollar/Franc - Exchange rate was 1.526 (1 Dollar buys 1.526 Swiss Francs). Now we can calculate: Multiply the price in Dollar with the ratio (10): 24 7/8 x 10=USD 248.75. With other words, ten ADR's equal one share of Sulzer Medica and will cost you $248.75 (excluding transaction costs). Now you multiply this Dollar-amount with the exchange rate: $248.75 x 1.526=SFR 379.59. The ADR has been valued fair. The Bank of New York offers free software, which does all the calculation. |