Pauly, that is a great question; I think you are right that DGTLF picks up the price action that HK 0329 gets at close of trading day BUT because of the capital reorganization, DGTLF has not been trading for a month or so though is supposedly scheduled to begin trading again on Wed Jan 12.
Before like in September etc, when DGTLF was active, even if there was no volume in it on any given day, it would show the same exact daily price movements that occured on HK 0329, so I think you are right, it tracks it and I think exists just so anyone around the world who doesnt have access to the actual stock on the Hong Kong exchange can have access to DGTLF to trade the company.
Though just remember, the DGTLF share price is in USD dollars and HK 0329 is in HKD (Hong Kong dollars) SO there is a conversion in the pps using that days exchange rate (as of Friday, the exchange rate was 1 HKD = 0.1287 USD), so if you see HK 0329 at HKD$0.53 per share, the DGTLF the next morning will be like USD$0.0682 per share. Also, on top of the exchange rate, there also is one last issue of liquidity in DGTLF so even if DGTLF happens to be quoted at USD$0.07/share, there may not happen to be an ask even sitting out there because of no volume; not sure how many out there who ever owned DGTLF knows that it is trading again from Jan 12 to 19 which is why I posted that FYI in the first place. It is possible that Wed, the first day, it may be slow to get volume (bid/ask) but maybe by a day or two volume will pick up again as it gets traded again. I really am unsure on all of these things but I do know that the last time I overlayed the charts for a several year window (DGTLF and HK 0329) they matched up perfectly, so I think you are right, DGTLF tracks the HK 0329.
As far as how much capital to use for this one, I have no idea but I do know that HK 0329 has about a Billion dollar market cap (they brought in sales in 2010 of nearly a Billion) so the P/E is literally ONE! I think Dragonite also got all of their debts paid off in 2010 with private equity investments in the company (hence the restructure) but now coming back on the OTC market, the stock may explode because since it was traded (pre capital reorganization) two events had not yet transpired, Dragonite winning the only US Patent for ecigs as well as the FDA losing the right to stop imports into the US so yes this one could explode soon, Im probably going to do like you, load up on it.
cheers
AI
