(BARC.L) Barclays PLC Buy/Sell

http://www.pinksheets.com/pink/quote/quote.jsp?symbol=bcs#getQuote

This is how I do it. Others may say differently.

Last trade 21.72 at 4.00pm ET

Exchange rate at 4.00pm ET (9.00pm GMT) ranged from 1.64144 to 1.64124 (I take the readings from the relevant time bar on IG's 1 minute GU chart and use the higher rate cos it gives the worst case scenario for that minute). There's probably an argument for saying you should take the exchange rate at the current time to get an indication of current value. I prefer to deal with what was at the time the ADR was traded than try to work out what it might be worth 3 hours after the trade. There's also an argument (which was had here some time ago) for basing the calculation on the ratio of closing UK price to ADR at that time but I can't see why one would lock in to the exchange rate at what IMO is an arbitary time.

$21.72 = 21.72/1.64144 = £13.23

BUT you'll note from the pink sheets (which seems to be the best site for finding the ratios), there are four ADRs to each ordinary share. So you need to divide the result by 4.

£13.23/4 = 330.8p

Don't get too hung up on the ADR. If nothing dramatic happens overnight my experience is it gives an indication of round about where things may start in the morning. There again there was a spike the other day which gave no indication as to reality the following day. I think its probably those of us who are down (in both senses of the word) who look desparately to the ADR for a sign that things will be better tomorrow!