TT,We'd have to be across a table talking this one over a beer...

TT,

We'd have to be across a table talking this one over a beer or two. Trust me, its a pain in ass for my SMSF (Lonestar delisted and then exchanging for US shares). Outside of SMSF, I can trade LONE as easily and cheaper using Intereactive Brokers .. US/CAN/Aust whatever and denominated in whatever currency needed (and account goes long/short whatever currency other than the account's home currency - which for me is US$).

I do believe in EMH (otherwise I'd be a technical guy who believes there is advantage to be found in price history). I side with Eugene Fama's view of - "I take the market efficiency hypothesis to be the simple statement that security prices fully reflect all available information." That doesn't mean that there isn't "alpha" to be found. We can and do interpret data differently and investors will pay different multiples based on perceived value. What I was suggesting is that the FX is not a reason to be in the stock. You could look at it as an "arbitrage opportunity" - effectively the same commodity (SEA stock) in 2 different markets with a different price without any holding cost (assuming you are not borrowing money in each of the markets). Buy Low - Sell High i.e. Long SEA at cheaper price and short SEA at the more expensive price. But who cares is my point.

Likewise with the Funds - its all about their mandate as you say. An ASX300 fund manager is going to have to sell SEA if its delists. Of course the plethora of US Index and ETFs would buy whatever they need to to track their index .... which would benefit SNDE holders (when no longer ADR) and ASX holders of SEA were it to continue to be listed here. In addition any ASX listed fund, e.g BlackRock IJR (Small Cap USA) would buy SNDE too if it fits in the mandate.

Can't see say a ASX 300 fund manager speculating that say SEA was going to be out of the index come Mar 31. Most of the index funds have very clear, rules based investing criteria, buying stocks when the specific index rules are met and selling when they no longer meet those rules. They could care less the company's assets are, just where they are listed.

I agree with what you say re the index fund manager.

SEA went down today. So too did FDM, STO, COE, WPL on the ASX. And a few went up. Each by a different %. Its a market of stocks as well as a stock market. I bought more today at 35.5 ... not happy but felt risk/reward is there. If EM gets us off the ASX before June 30 I will be royally pissed.