I went Yahoo finance and started typing C h i n a S t a t and one of the choices in the drop down was a pink sheet ADR listed on the Yahoo page as China State Cons ADR (CCOHY). Ok, so I guess it is was listed elsewhere and just new in Shanghai. With a name like that I want to take a look and see what's what.
Not so fast my friend!I called Schwab's global desk and asked if CCOHY was the correct symbol for China State Construction Engineering and it is not. CCOHY is for China State Construction International Holding which is a different company doing most (maybe all) of its work in Hong Kong. So it's not like it's confusing or anything.
If you are one to try to learn a little about some of these companies that come to the market or get mentioned here and there (mostly CNBC Asia) you really need to be sure you are looking at the correct company and have your symbols straight. A lot of the names are similar or have similar words in the name like the word construction etc.
For studying purposes you might be able to afford wasted time looking at the wrong stock but it could be a different story if you bought the wrong stock.
10 comments:
CNBC is mostly for touting failed investments to unsuspecting noobs (present company excepted, of course).
Roger,
On a sideline, yestarday on CNBC Europe as a speaker there was Elissa Bayer from Charles Stanley. She is a person that I wanted to mention about making very bad calls in 2008. I do not know how they invite her on CNBC. I did not hear her since my internet conn. is very bad. But I have no intention of hearing anyone like her even if I had a good connection.
Best,
Jeff from Milan, Italy
Hi Roger: WIth all of this chatter about a weaker dollar going forward (see Buffet's column today in the NYT linked below), I am wondering if buying country specific etf's affords some diversification out of the dollar.(I think it does but am not sure.) FOr example, in today's headline, it says China stock market now in bear territory, off 20%, yet the FXI is not even off 10% from its high. Is this a currency effect? When you buy something like ECH, are u getting a currency effect as well? If these pundits are correct, I am wondering if this is a way to protect against a secular dollar decline. Many thanks....Bob from NY
http://www.nytimes.com/2009/08/19/opinion/19buffett.html?_r=1&scp=2&sq=buffett&st=cse
buying any foreign stock or fund or bond takes you out of the USD. if you buy a british stock and GBP goes up agianst USD then your ADR will outperform the share in London and the opposite would be true if GBP drops against USD
As for FXI relative to Chinese choices it is not a great proxy for Shanghai, it did not go up as much so it is not a surprise if it does not go down as much. look at a chart of FXI v Shanghai and see for yourself.
thank u
Buying obscure stocks is a reason to have a competent financial advisor steer one through these type of securities.
I think CNBC and FOX News/Business get a chunk of their ratings from old retired guys watching the "babes".
MSNBC must receive a chunk of viewers from San Francisco, perhaps wearing those gloves you were addressing a short time ago.
Very good point! I have encountered a number of these: China Green Agriculture vs. China Green Holdings; China Railway Construction vs. China Railway Engineering; etc.
I don't think it's a scam, just a lot of small companies, with a limited number of English words to describe them (we don't especially like to use Chinese names, obviously).
The easiest solution I've found is to look up the ticker or name on Reuters: http://www.reuters.com/finance/stocks/stocks
Their search tool will list every issue with similar tickers or names, so you can make sure you're not confusing companies with similar names, and then, even better, another button will give you the list of every ticker the selected company trades under.
god forbid they ever start using the word happy in the names of companies.
Lol. Or Best, Wonderful, Greatest, Super etc etc.
Roger,
I've found Bloomberg TV to be much better than CNBC, esp. on their Asia coverage. The Trade and Asia Confidential air mid-evening here (CDT), and its part of the standard Comcast Cable programing, fwiw.
Old Trader
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