Inner Circle Trade Update: Buy Suez Environnement (France: SEV, OTC: SEZSF, ISIN: FR0010613471)

Subscribers are reporting issues in their efforts to trade Suez Environnement (France: SEV, OTC: SEZSF, ISIN: FR0010613471) shares. Some are getting pushback from their US brokers, including Charles Schwab, which are declining trades citing a 40-day restriction before US investors are allowed to buy. And Schwab and others are in some cases trying to rip off unsuspecting clients by attempting to extract larger commissions and so-called exchange fees.

First, although US brokers can’t solicit trades in Suez Environnement until state Blue Sky rules and conditions are met, such as the establishment of trades for a specified period of time on a major market, this doesn’t bar unsolicited trades. You can call the trade into your broker.

Second, there’s no such thing as an exchange fee. This is a trick to levy additional charges and commissions–or just to garner more revenue from you–on trades executed via another brokerage.

Don’t fall for it. Demand the commission schedule without the additional charges. If your broker balks, transfer your accounts to another broker who won’t gouge you. One we’re particularly fond of is Interactive Brokers.

And some subscribers who had shares in Suez SA before the deal to merge with Gaz de France to form GDF Suez (France: GSZ) are wondering if they now have shares in Suez Environnement. The answer is that you should have received one new share of the spunoff Suez Environnement for every four shares of Suez SA. Any additional fractional amount would have been paid in cash.

Shares in Suez Enrironnement continue to trade slightly lower in Paris. And the company is now trading in the US over-the-counter market under the symbol SEZSF, which represents the same ordinary shares traded in France. We recommend you buy under whichever listing–SEV in France or SEZSF in the US OTC market–is cheaper to execute.

Buy Suez Environnement (France: SEV, OTC: SEZSF, ISIN: FR0010613471).  

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