Buying Dinar vs. Buying Iraqi Stocks

[Big Daddy Dinar]

I'm new to this forum, and very impressed with the level of discourse on the prospects for success for the new Iraqi Dinar. I myself think that the dinar is worth speculation, given that (1) the government has every incentive to increase the value of the dinar, (2) most of the debt will be forgiven due to U.S. pressure, (3) Iraq's tremendous wealth, and (4) the presence of U.S. economic expertise in Iraq. On the other hand, I don't yet trust any of the new Iraqi companies that are traded on the ISX to behave in a manner consistent with U.S.-investor standards. In as regulated an environment as the U.S. securities industry is, we STILL have our share of investor scandals (Enron, Tyco, etc.) In Iraq, things are so much in flux, what guarantees do you have that executives at the companies that you are purchasing shares in will not loot their company once the new capital comes into it? What pressure can be brought to bear on a president of an Iraqi company paying himself an excessive salary?

I admire the fearlessness with which many on this board have apparently jumped into Iraqi equities, but I wonder what assurances they have as to a suitable return on investment? I am eager to hear the responses.

[bkewl]

I'm afraid that the only assurance there is... is speculation! As many have posted before me, "Don't spend money you can't afford to lose." With that said, many people have opened bank accounts with the hopes of being able to acquire stocks in the early stage. Get in while at a low price and sell as more foreign investors trade.

Unfortunately there is very little information about the businesses listed on the ISX. Maybe they are positioned to follow in Enron's footsteps... then again maybe not...

[HJS]

Don't forget the dates were one of Iraq's main exports pre-war.

They did not really have much to export. Oil and dates were the main two.

[BRYAN]

On the other hand, I don't yet trust any of the new Iraqi companies that are traded on the ISX to behave in a manner consistent with U.S.-investor standards. In as regulated an environment as the U.S. securities industry is, we STILL have our share of investor scandals (Enron, Tyco, etc.) In Iraq, things are so much in flux, what guarantees do you have that executives at the companies that you are purchasing shares in will not loot their company once the new capital comes into it? What pressure can be brought to bear on a president of an Iraqi company paying himself an excessive salary?

I admire the fearlessness with which many on this board have apparently jumped into Iraqi equities, but I wonder what assurances they have as to a suitable return on investment? I am eager to hear the responses. :D

That's right big daddy , we don;t know if they are stable companies , but i picked most companies that were in business before our invasion and been around and established and is doing business now , Let's look at 2 of the cuurent hotel stocks .

Bagdahd hotel and Isthar hotel .
They have beeen in business way before we were there and is still going strong today !!!!
Yes there were a couple that were available and were scratched from the ISX list recently , but be aware from the news articles that you research,
make descions based upon your own research not someone elses .

investing in Iraq is a personal choice being you hold it is currency or an accout, it is risky and undeterminned at what rate / or time frame all of this will fall into a profitble situation ,if at all !! As for me I like the ride !!!! :wave:

[jeffreyspears]

To hjs, What do the dates matter? Isn't Iraq one of the worlds largest exporters of oil and natural gas? I would think that dates would be the last thing from anyones mind. Please fill me in if you have any info that I am missing. My computer is running kind of slow of late or I would look up some info. http://forum.skadi.net/images/smilies/pantheon_europa/sod00000.gif

[Psycho for Dinar]

To hjs, What do the dates matter? Isn't Iraq one of the worlds largest exporters of oil and natural gas? I would think that dates would be the last thing from anyones mind. Please fill me in if you have any info that I am missing. My computer is running kind of slow of late or I would look up some info. http://forum.skadi.net/images/smilies/pantheon_europa/sod00000.gif


"Iraq's string of wars in the last 20 years, the Iran-Iraq conflict, the 1991 Gulf War and the 2003 invasion, not to mention pollution, have blighted date trees, a symbol of Iraq... What was once 'the country of millions of date palms' has seen the number of its trees fall from 33 million in 1958 to 13 million today.

"After oil, dates were once the country's second largest exports. They were smuggled -- like oil products -- by wooden boats down the Gulf in defiance of UN sanctions during the last 13 years of Saddam Hussein's rule... Senior officials in the former regime, including Saddam's elder son Uday, who chaired a date-exporting company, lined their pockets with the industry's takings."

http://chrenkoff.blogspot.com/2004/08/good-news-from-iraq-part-8.html

[HJS]

To hjs, What do the dates matter? Isn't Iraq one of the worlds largest exporters of oil and natural gas? I would think that dates would be the last thing from anyones mind. Please fill me in if you have any info that I am missing. My computer is running kind of slow of late or I would look up some info. http://forum.skadi.net/images/smilies/pantheon_europa/sod00000.gif

All the big players are going to get in on the oil and gas. Shell, Xenon etc etc.

I'd rather buy into to something that it not as 'saturated' with investors. There will be more room for growth & return. Also, the oil price is more a result of OPEC than the usual market forces on shares.

HJS.