Our buy target for new Wildcatters Portfolio holding BG Group (LSE: BG, OTC: BRGYY) caused some confusion among subscribers. Note that the buy target depends on whether you buy the shares on the London Stock Exchange (LSE) or in the US over-the-counter market (OTC).

Shares of BG Group trade primarily in London, under the ticker “BG.” Not every broker allows investors to buy LSE-listed stocks directly, though access to the UK market has become increasingly common over the years. We prefer the LSE-listed shares, which offer better liquidity than the US-traded American depositary receipts (ADR).

Another wrinkle of which investors should be aware: Some brokers have the LSE-listed shares under the ticker “BG/” instead of “BG.” If you’re unable to find a quote for BG Group on your broker’s website, try searching for “BG/.”

Also note that the LSE-listed shares don’t trade in British pounds sterling but in pence (1/100 of a pound). For example, at the close of London trading on March 25, BG Group closed at GBp1,533, or GBP15.33 (roughly USD27 at current exchange rates). BG Group’s LSE-listed shares rate a buy under GBp1,650.

Investors unable to buy the LSE-listed shares can still purchase the US-traded ADRs that are listed OTC under the symbol “BRGYY.” Each US-traded ADR represents ownership of five London-listed shares. Average trading volume is around 50,000 shares per day, and the ADRs closely track the performance of the local-market shares.

BG Group’s ADRs rate a buy under USD133.  

The model Portfolio will track the performance of the LSE-listed shares, but we will also provide updated advice on the OTC-traded ADRs in future issues and Flash Alerts.