GUWonder

There are two categories of ADRs in the US: sponsored ADRs and unsponsored ADRs.

In the case of unsponsored ADRs, investors in the unsponsored ADRs may easily lack shareholder benefits and voting rights for the company's class of security represented by the ADR.

The SAS ADR registration statement was filed with certification under Rule 466 to be an unsponsored ADR back in 2008. That was when this kind of unsponsored ADR thing took off like crazy in the US.

Im a new user

If you use an American broker or weird American instruments (ADRs), then SK might not even be able to see that you are a shareholder.

GUWonder

Even were SK to be informed about non-Scandinavian-residing individuals who are its shareholders in some way, SAS still generally wouldn't provide such shareholders this elite status shareholder benefit. SAS limited this SAS shareholder benefit to individuals registered as resident in the SAS home market countries.

Depository receipt instruments for some foreign company stocks aren't so weird since there are plenty of non-American equivalents: there are EDRs and GDRs in Europe, IDRs in India, LDRs in Luxembourg and so on.

worldwidedreamer

That's easily the most fascinating thing I've learned here in ages. Even though I'm a recovering investment banker, and work in the adjacent venture capital industry, I had no idea that ADRs could be unsponsored. It also brings up the question of what non-US securities I can directly hold with a US fiduciary. As a US citizen most foreign financial institutions are afraid of the regulatory risk in having me as a customer. The combination of US tax policy and unsponsored ADRs creates real governance issues!

GUWonder

If you're more interested in some of the issues in this area, look up court decisions, administrative rulings and regulatory announcements which touch upon the SCOTUS ruling on Morrison v. National Australia Bank. It provides a bit of a window into some of those issues.

Unsponsored ADRs took off like crazy in the US in 2008. And even with the Dodd-Frank Act era coming into play after the 2008-2009 financial crisis, there are these kind of ADRs around being traded today OTC. Caveat emptor is what I say about putting money into these kind of securities -- and I would say the same thing about sponsored ADRs too. These ADRs do have some use for retail investors; but, in this case, one use they don't have is to be easily useful toward getting the shareholder benefits from SAS that SAS markets to its registered individual investors resident in its home market countries.

worldwidedreamer

Next time I'm having whiskey with my wealth manager, I'll have to ask him about what types of non-US registered securities I can safely buy...and from what jurisdictions. If I'm less comfortable with HK jurisprudence going forward, does that mean I should hold those securities either traded/domiciled in Singapore or someplace else?

vanillabean

Am I reading it correctly that SAS shares have been doing okay so far this year, unlike the stock market in general which has experienced quite the blood bath?

https://borsen.dk/investor/aktie/S2529/SAS-DKK/SASAB

oliver2002

Well, I invested roughly 1000€ into SAS and the MSCI Nordic ETF in 2019-20. Look at how they performed

GUWonder

The persons who averaged in from around the 2020 November Election Day and held on beyond November 30th 2020 until present, they are up 40+% along with the status IIRC.

Late December 2021 purchases of SAS share are also above water currently.

FFlash

I wouldnt dare to buy any airline stock. Reason being overinvestments which needs no business high school to think out. If shares rise, they only rise for a speculative reasons. So the stocks can be good for speculators

GUWonder

As the saying goes, a great way to become a millionaire is to be a billionaire who puts too much for too long into an airline.

FFlash

Or, how does a middle-east oilman become a millionaire? He buys a soccer team in England.

GUWonder

Not sure which English football clubs you have in mind, but I was under the impression that much of that money is ultimately national government money behind the front and thus it's just play money that buys those teams.

Maybe SAS can become an English football club and get some play money sent its way too. Given how the Norwegians have dropped out of pouring money into SAS shares, maybe Gulf Arab kingdom money can be the replacement for the Mid-West kingdom money that bailed out from bailing out SAS. From SAS AB to SAS FK?

I'm not going to be surprised if LH is going to eat SK one day. Or maybe it can be Aeroflot ---- if Finland and Sweden don't go into NATO sooner than later, and Germany doesn't try to stop it.

nacho

LH might eat it IF SK ditches all the expensive employees. Mr and I were talking about SK survival today and we think it will hang on life support for as long as it can because it is after all a flag carrier in Scandinavia. We don't think the Swedish government will let go of it, nor the Danish politicians. There are a lot of voters still enjoying the great benefit working at SAS. No matter what we will not buy their shares.

SAS is hiring CPH based cabin crew:

"We are excited to announce that SAS Link Crew Services A/S and SAS Connect Crew Services A/S are looking for Cabin Crew to operate out of Copenhagen. "

https://jobs.aapaviation.com/job/sas...ew-copenhagen/

I guess it's a separate company from SAS so that the contracts might not be as good as those who has been working there for a long time.

vanillabean

You might see the dilema in some marriages too!

Down 3.89% on Friday, it appears. Not buying the dip?

Of course my dilemma is when to get back into stocks. We dropped from 80% of the portfolio to 10% a few weeks ago.