E Stagflation?

Britain etcetera

*BP plc will sell very low sulfur fuel oil (VLSFO) for marine shipping. It will also sell high sulfur fuel for vessels with sulfur scrubbers which can clean up the exhaust. BP is also partnering with dirty fuel champion Exxon-Mobil and the Alaska Gasline Development Corp which belongs to the Alaska State, to create an LNG export site for Asia markets.

*GlaxoSmithKline was rated neutral by UBS and Barclays today with the latter setting its target price at GBX1650.

*Irish Greencore, whose primary listing is in London, was upgraded to buy today by Shore Capital. GNCGF did a share buyback recently to cover the sale of its US sub, but US holders of GNCGY were not eligible. I own the F shares because they were available with Fidelity but not with other discount brokers and I converted a couple of hundred (expensively) to be able to give you the prevailing price. I refused to convert them back to get more cash because I thought that was too generous to the broker.

*Vodafone of Britain says that a ban on Huawei equipment will delay 5G installation. Germany is opposed to a ban on Huawei. VOD is under a cloud in European trading over its highly complex capital raising for taking over German and Eastern European telcos from John Malone's group. It will issue bonds which can only be sold to institutional investors because they are so complex to cover the conversion of compulsorily convertible preferred stock financing the purchase from Liberty Media, LBTYA, LBTYK, sold.

VOD Italia chopped 1300 jobs in Italy and 2000 in New Zealand. VOD 's target price was cut to GBX 227 from GBX230 by JP Morgan analysts but it was kept as an overweight. They are my new brokers but my stocks are still in limbo.

*Morningstar rates BAE System as protected by a narrow-moat because of the costs of switching defense suppliers. It says BAESY is 24% underpriced. British stocks are under pressure as the latest Brexit vote nears, but global players are an appealing alternative.

Chile

*Morningstar rates Sociedade Quimica y Minera de Chile as having a narrow moat because of its cost advantages versus other lithium miners. The stock of SQM is 39% below the fair value estimate, says the analyst. SQM CEO Ricardo Ramos said yesterday that its plan is to produce lithium based on demand, which he predicted will be higher than last year. He also said that SQM doesn't intend to hold back sales to “sustain prices. SQM reports on its Dec. quarter on Wednesday, the 13th. It fell to a new low last week.

China

*China Mobile was upgraded to buy from hold by Jefferies Financial analysts yesterday. CHL rose 2.7% but still yields 42% and has a p/e ration of just under 12x.

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Comments

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Carol Klein 1 year ago Member's comment

Good article Vivian, but I think you made an error. I read the article by David Goldman you referenced. But on Seeking Alpha, not Asia Times.

Leslie Miriam 1 year ago Member's comment

Thanks, have the link?

Carol Klein 1 year ago Member's comment

I think it was deleted. Maybe something fishy is going on.