Tuesday is still a busy day despite my overnight capture of Monday's news for subscribers after Sundown. With Passover coming during Palm Sunday and Easter, there are only 3 full working days this week. We off start with 2020 results from Vancouver, a share recommended by Martin Ferrera. And give you a non-ADR to think about buying, a bonus stock. Sterling is down against the dollar but up against the euro confused British shares. The confusion was widespread as the complexities of Monday's market continued. The rule now is: nothing is written in stone.

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Drugmakers

*AbCellera Biologics reported after Monday's close what its CEO Carl Hansen Ph.D. called “a breakthrough year” with “strong growth across every area of the business”, thanks to its discovery of the first monoclonal antibody against covid-19. He also cited its strong cash position and profitability as likely to “help bring new antibody therapies to patients faster and more efficiently”.

ABCL had revenues of US$233 mn in 2020, of which $213 mn were from milestones and royalty payments. This was up 1.9% from the prior year. Diluted EPS rose 1908% from the prior year's loss of 1¢ to 45¢ and basic earnings to 53¢. Earnings came to $119 mn from $2 mn in 2019. It moved from operating losses of $4.117 mn last year to $156 mn in operating income in 2020. The key takeaway is that after paying no Canadian tax in 2019 because there were no net earnings, last year it set aside $39 mn for tax. It also paid down some $7.5 mn of debt and convertible shares boosting paid-in capital.

ABCL also signed up 27 new partners to bring the total to 103 partnerships, gaining research feels of $20 mn, up 71% in the year. Its first antibody to hit the market last year was Bamianivinab, which Eli Lilly is commercializing for emergency use now. Since there was a misunderstanding between me and Martin over when to buy ABCL at its IPO, I wanted to stress that all is forgiven as we are ahead nicely.

*Swiss Roche gained on the EU CHMP licensing its evrisdi to treat 4 variants of infantile spinal muscular atrophy. RHHBY works with PTC Therapeutics and the SMA Foundation on this baby-killer.

*Fellow Swiss Novartis got approval for 2 multiple sclerosis drugs from the EU medical regulator, for B-cell therapy Kesimpta to treat relapsing MS in adults who can self dose it monthly, okayed by our FDA last August. Glaxo GSK has rights to the drug in some countries. It also was ok'd to sell fibroblast acruatin to treat the disease under license from SOFIE, the research arm of Heidelburg U. NVS fell.

*Israeli drug stocks here reversed their fall yesterday when market makers were observing religious holidays. Teva opened down 0.13% but then rose about a half percent because gurufocus called it modestly undervalued.

*Novocure rose 5% at the open. NVCR uses electricity to kill cancers, a new cure, hoping to rescue a UK cousin with pancreatic cancer. She opted against extreme measures and has died.

*The worst performer in the sector is again Zymeworks of Canada whose stock fell 3.52% at the open and then lost even more, at one point down 4.22%. ZYME then mysteriously reverse at about 11 am and now is up 5.05% at $31.34. It discovers bi-specific antibodies and seems to also generate bispecific shareholders and analysts.

Finance

*The Friday night massacre of Archegos was geographically unfair. Banks shut for the weekend in Japan and Switzerland suffered huge losses while US West Coast banks like Wells Fargo and SVB got out unscathed. Who lost how much is still unclear but according to JP Morgan bank, where my company account is housed, the full loss maybe $10 bn. EEK.

*Sampo Oyj gained 5.11% today. SAXPY did not do 

*Allianz gained 2.07%. It is a fund manager and insurer with very conservative instincts and also gained because its US arm is firmly on the West Coast and able to exit any risky Archegos position.

*AIG Asia, AAIGF, rose over 2.8% today because it is building out its insurance presence in Asian banks but is not investing in them.

*Banco Santander gained 1.61%. SAN didn't dabble in prime brokerage. Had it picked up Swiss rockstar banker Andrea Orcel whom it wanted to hire, things might be different. It will lend to speculative borrowers with high yield offerings under Rafael Noya, the head of global debt appointed last year. Examples: Gatwick Airport, Eurostar (the cross-Channel railway), French supermarket chain Casino, and small telcos. It works with managers like KKR, Cinven, and the like. It also will invest in securitizing mergers and acquisitions. Post-Brexit, SAN will shut its 111 UK branches and move its UK HQ to Milton Keynes from London to cut costs. Its Chair made her career in Britain but is letting go.

Tech

*Mercado Libre, MELI, recovered 2.1% today at the opening and is still up 1.5%. The Latin American e-commerce and e-pay firm is listed on the NYSE and incorporated here but its main owners are Argentinians who observe Passover. It fell ~$18 this week and is well below its year's high of $2020.

*US-Israeli Tower Semiconductor popped 1% today on expectation of new business from auto and phone makers needing chips. Its new galvanic capacitator isolation recharging technology is expected to appeal to electric and hybrid vehicle makers, green power, and users of solar inverters and wind turbine systems. While the US incorporated, TSEM is run from Migdal Haemek, Israel.

Energy

*With the Suez Canal open again, the oil patch is underwater. Royal Dutch Shell B RDS-B opened off 1% but dropped 5.8% in London. BP lost 1.05% at the open and is now off 1.33%. Dutch Antillean Schlumberger Ltd SLB rose 0.14%.

*NIO rose over 6% because oil prices fell but not enough to make electric vehicles overpriced. It tracked not just Tesla, but also Polaris, a new listing.

*The big winner was Azure Power of Mauritius, AZRE, which opened up 5.4% and is still up over 4.5%. It makes solar panels sold to the Indian government to place on rooftops in sunny India.

*The worst performer is Energy Fuels, UUUU, which aims to replace China as the source of rare earths. It is off nearly 5%.

*Another loser is Cameco Corp, CCJ which was downgraded to market laggard by The Investment Reporter of Canada. It is down 1.5% on Q.

*Today we showcase an article from Bloomberg about a Houston, TX-based company, not foreign, but one I believe in. By some counts, it is the largest infrastructure firm in the S&P 500. It is a good stock for yield, with a payout ratio of over 7%. One of its rivals, Nexgen is up 2.15% today.

Here is a report on KM by Bloomberg edited by me:

Your bonus share:

"Pipeline giant Kinder Morgan KMI plans to expand its carbon-capture business, joining the ranks of major oil and gas companies capitalizing on clean energy investing. Fueled by a push to eliminate greenhouse gas emissions, carbon capture and renewable energy projects are sprouting up alongside Kinder Morgan’s massive network of pipelines crisscrossing the U.S., and the midstream operator sees the potential for new business opportunities. Through a unit launched earlier this month, Kinder Morgan will invest in technology and partner with companies on carbon capture, biofuels and hydrogen projects, among other initiatives.

'“What we’re trying to do is augment and supplement that business and grow that side of the business by capturing, transporting, and providing carbon sequestration services,” said Jesse Arenivas, the president of Kinder Morgan Energy Transition Ventures, in an exclusive interview with Bloomberg. “We see our CO2 business as a growth vehicle, not a dying business.”

'Energy companies Occidental Petroleum, Halliburton, and NextDecade Corp. formed ventures in the past year dedicated to low-carbon energy following growing pressure from investors to address climate change and focus on sustainability. Climate scientists consider carbon capture as essential in meeting climate goals, but high costs typically slowed the adoption process.

'Carbon dioxide is not a new business for KM which transports about 1.5 bn cubic feet/day of naturally-occurring CO2 through its largest pipeline from a geological formation in Colorado to the Texas Permian Basin. There it is used to boost the productivity of oil wells, both KM drilling sites, and others. In 2019, Kinder Morgan considered a sale of its carbon dioxide unit but decided to keep it. “We were always a marketer, transporter, and user of CO2, and now we’re looking to invest upstream in the form of carbon capture,” said Arenivas, who has overseen KM’s CO2 segment for over six years.'