RE:RE:RE:RE:RE:RE:RE:Insider PurchaseTudManiak wrote: Stockzord,
was just about to post about that.....you paid 93 cents canadian when it was trading at 86 canadian in Canada!!!!!!!!!!!!!! why would you pay a 7 cent premium!!! thats nuts!!!
Bid was $.65 on the OTC side = $.86 in Canada. Ask was $.6999 OTC, $.93 in Canada. I chose to clear out the shares at the ask.
However, I would point out that the $.05 difference I paid to make sure I got the shares at that price converts to a higher premium in Canada because the Canadian dollar has been just a tad weak - maybe you've noticed that when trying to buy American goods. The large $.05 spread on the OTC is characteristic of thinly traded stocks on any exchange.
But aside from the way Canada is mismanaging its currency, this brings up another arb point. A few years ago the Canadian dollar was trading at par to the U. S. dollar. Any OTC trade of a Canadian stock has the side benefit of playing the exchange rate. If the Canadian dollar ever moves back to par with the U. S. dollar, my investments in Canadian stocks move from $.752 (the exchange rate today) back up to $1.00. In other words, I have the potential of a 33% gain just on currency rate fluctuations alone, without any other changes related to the stocks or businesses I'm trading in Canada.