ok22 Posted January 21, 2010 Posted January 21, 2010 Am confused by the unequal price movements in the various FFH stock symbols. For example on 1/21/10: FFH.TO down 1.51% FRFHF.PK down 2.66% Think that both are quoted in US dollars. Is that correct? What should the relationship be between the 2 symbols? Is there are an arbitrage situation? This has been going on for a while since the delisting. As an aside, I own the FRFHF.PK and can't see any logical reason for the big price drop since the start of the year. Does anyone have an opinion on the price drop? IV seems to be at least (USD) $380 by year end 2009 and here we are again well below book. Is Mr. Market being silly or is there something that we all are missing as FFH "fans?"
nodnub Posted January 21, 2010 Posted January 21, 2010 read this first, http://cornerofberkshireandfairfax.ca/forum/index.php?topic=1588" data-ipsquote-contentclass="forums_Topic" 13071#msg13071 Also, FFH.TO is in C$ and is not equal to FRFHF.PK (US$) FFH-U.TO is the symbol for the tsx listed security in US$
nodnub Posted January 21, 2010 Posted January 21, 2010 so looking at the direct comparison of FRFHF.PK and FFH-U.TO They closed today at 348.95 and 350.00 respectively.
oldye Posted January 21, 2010 Posted January 21, 2010 so looking at the direct comparison of FRFHF.PK and FFH-U.TO They closed today at 348.95 and 350.00 respectively. Arbitrage!
nodnub Posted January 21, 2010 Posted January 21, 2010 so looking at the direct comparison of FRFHF.PK and FFH-U.TO They closed today at 348.95 and 350.00 respectively. Arbitrage! oldye, I hope that exclamation means you are joking? This looks like picking up nickels in front of a steamroller to me. ok22, at a minimum I think you should read the following two short sections of this article. They are highly relevant to what you are suggesting. http://en.wikipedia.org/wiki/Arbitrage#Execution_risk http://en.wikipedia.org/wiki/Arbitrage#Dual-listed_companies
gaf63 Posted January 21, 2010 Posted January 21, 2010 Just not enough volume in FFH-U to make a comparison , 100 shs. today compared to over 15K on FRFHF( which is high for it) FFH.TO trades at a considerably higher volume than either
ok22 Posted January 21, 2010 Author Posted January 21, 2010 Thx Nodnub the info and clarification and Oldeye I totally appreciate the humor. However, it was a ? not a declaration of intent ;)
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