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Wheaton Precious Metals Corp. (WPM)
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Skeena Resources Limited (SKE)
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Wheaton Precious Metals Corp (WPM)
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Skeena Resources Limited (SKE)
Q: Hi,
I bought these two stocks at the same time, last March.
The Cdn WPM gained 17% since, while the U.S. WPM gained more than 22%. Could you explain why ?
Thus, in considering buying SKE, is it better to use the U.S. market ?
Gratefully,
Jacques IDS
I bought these two stocks at the same time, last March.
The Cdn WPM gained 17% since, while the U.S. WPM gained more than 22%. Could you explain why ?
Thus, in considering buying SKE, is it better to use the U.S. market ?
Gratefully,
Jacques IDS
5i Research Answer:
Inter-listed stocks should trade very closely once currency is accounted for. The Canadian dollar has risen since March, but frankly not by 5% so f/x cannot fully explain the full difference here. Today, the prices are exactly equivalent using today's currency prices. The difference may be as simple as a better purchase price on the US side. Typically there should be zero difference, other than currency, between the two markets. If a company pays a US-dollar dividend then we would prefer the US side. But SKE pays no dividend so we would be largely indifferent here and would select the market where one has cash available to reduce possible f/x conversion fees.