Ditem Explorations Inc DTEMF

RE: Berlin: + 30% !!!

[my2bits]

There is no real relevance between the two markets. However, with time the market tends to adjust multiple listings settle down to a comparatively same value – exchange rates applied. First a couple of definitions Stock Exchange: Organized marketplace in which stocks, Common Stock Equivalents and bonds are traded by members of the exchange, acting both as agents (brokers) and as principals (dealers or traders) where each sets their specific requirements for membership. Commodities exchanges trade specifically in options and futures, such as Nymex, Amex & CBOE. Interlisting Is the listing of any security in two or more different exchanges (synonyms “cross listing or dual listing”. What does it do for the company? 1) Increases the liquidity for the security – more buyers/sellers/participants 2) Like the real estate maxim “location, location, location” multiple listings is “exposure, exposure, exposure” for the company and thereby can help raise more capital. Generally there is no direct correlation between markets. However, there is a tendency with time for listings in multiple markets to show a common fair value for a company’s stock. In the case of DIT we are dealing with an oversea market and an exchange rate both can influence the relative value of the share easily. Looking at the last trades in Germany & Frankfurt we are talking 2 euros (.03CAD) but in both cases with a very small volume. A trader who would try to buy in one market and sell in the other could not possibly make a profit considering the small price differential, the low volume and trading fees. Arbitrage Is the purchase of securities on one market for immediate resale on another market in order to profit from a price discrepancy. A possible scenario where a stock has not adjusted due to the difference in the exchange rate, you could buy DIT where it is undervalued and short sell where it is overvalued. However there are a number of factors to consider. You must have a broker that can trade in both markets, the impact of trading fees (buy and sell), the daily trading volume on each respective exchange, the exchange rate for converting from one currency to another. This type of game is not for the faint hearted only for the experienced trader of which I am not part of that group. Also in Canada you cannot buy/sell a stock in the US if it is listed in the US with the exception of OTCBB, pinks. However, there is one way to get around this problem, if you want to buy in the US buy it when the Canadian exchange is closed for a statutory holiday. So if you want to trying your hand at arbitrage try with a dual listing Canada-US. If you were in Europe you could give a try to DIT between Berlin and Frankfurt but here again the volume is too low to allow for a real profit after trading fees.