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Retail Investor's Perspective
less inclined to invest in shares of companies in USD. A static Investment Analysis form (hardcopy in particular) would not be able to run such scenarios. On a macro level, investment dollars may choose Canadian companies in Canada – politically more stable, expectation of a legal nationwide recreational market in 2018, internationally diversified companies including Australian and German operations, and now the probability of foreign exchange gains. Variables that many may not have even thought of (foreign exchange rates) may be an important factor when choosing where and how to invest in this industry – that is Ecoforming!
The Retail Investor using various tools may conclude that the share price of IMH and TBP should increase further and so should the Canadian Dollar. In this example, if that is one’s conclusion then the prudent investor may opt to purchase shares on the Canadian market and in Canadian currency rather than on the OTC. Those two companies are named only to continue with the example used previously and is not an investment recommendation of any kind. If a share of a company trades on a Canadian market for CAD$1 and the exchange rate is 1.32 the cost in USD is $0.758 ($1 x 1/1.32). Six months later if the share price remains unchanged but the Canadian Dollar has appreciated to an exchange rate of 1.22. A Canadian Investor using Canadian Dollars from start to finish has an all in ROI of 0% ($1 to $1). The US Investor when converting the proceeds of the sale back to USD receives $0.820 and has an all in gain of 8.1%.