Recently I received notice that an ADR from a stable company (i.e. NZT) is going to be delisted from the NYSE to save on the administrative costs. The company itself is solid and regularly distributes dividends to share holders. Furthermore, they will continue to be listed on their home stock exchange so I'm not too concerned with the fundamentals of the company.

However, I am concerned with being able to sell the shares at a point in the future. Given that, would it be better to sell off the shares now and take some nominal gains, or retain them until such time the stock should be sold for other reasons?

  • ADR = American Depositary Receipt – Scott Lawrence Jun 19 '12 at 15:11
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    Since you have asked about an ADR with a stable underlying foreign-listed stock, I've changed your title to reflect that. The advice seems likely to differ from a stock being delisted from all exchanges ever. But I upvoted you :) – user296 Jun 19 '12 at 17:27

I'm a bit out of my element here, but my guess is the right way to think about this is: knowing what you do now about the underlying company (NZT), pretend they had never offered ADR shares. Would you buy their foreign listed shares today?

Another way of looking at it would be: would you know how to sell the foreign-listed shares today if you had to do so in an emergency? If not, I'd also push gently in the direction of selling sooner than later.

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