E Two Days' Worth Of News

Numbers were also less than brilliant. Return on equity last year was 3.1% vs prior-year level of 12%. Net asset value per share came to euros 19.682/sh vs euros 20.71 last year. The board has now authorized another cut of euros 7.5/sh to cover more Nordea misses. The Finnish firm on Feb. 4 paid a dividend of 39 euros/sh for 2020 and this will be topped up with another euros 1.7/sh to be paid May 15. This prior year final dividend was euros 1.5 last year. Its payout level is nice but hard to justify based on 2020 results. It rose thanks to data massaging and payout to $1 under its 12 mo's high, $22.05.

*Today Cameco, CCJ of Canada, was tipped by writer Brandon Chapman on Talk Markets, to which I also contribute. He covered the quarterly and year-end results yesterday, which saw uranium production rise 4% to 2.8 mn lbs in Q4, offsetting a full-year fall of 44% to 5 mn lbs because of mine shutins because of covid-19. Cigar Lake is uranium costs US$15-16/lb vs a market price of $29.63 and is likely to be restarted soon. Sales in Q4 were off 39% in volume and only 3% in the full year. The share rose 8.5% yesterday on the news which Chapman says broke a long term resistance level. Because of new smaller nuclear electricity plants, CCJ expects to see a steady rise in the CCJ price by well over 200% to C$20.79-23.26 from current levels (C$15.95/sh) which, however, he says are still overbought. Chapman works for TheoTrade, an educational site with a free daily blog from which I quoted. This is their first posting on uranium. More on commodities below. Today after the 8% gain Weds. CCJ fell 2.7% after BofA-Merrill cut its rating to neutral with a Target Price of C$17.50. Its analyst Lawson Winder calls CCJ the “most liquid Western uranium miner” but thinks the target price level CCJ cited “is unlike in the near to medium term on current supply/demand outlook.” Analyst Andrew Wong of Royal Bank of Canada goes further, rating CCJ underperform with a TP of C$15.

*Canadian UUUUEnergy Fuels, rose another 4.81% today. It is a purer uranium play and also into rare earths. I am a believer in nuclear fuel.

Drug Stocks

*The big mystery on my return to the office was the steady erosion of the share price of an Israeli major, despite its having matched the consensus sales forecast while beating on earnings per share. The stock is TEVA. The sales came from mostly new products like Austedo, up 38% from prior quarter, and self-jabbing Ajovy for migraines, up 42% (because DIY jab was only launched in the final quarter.) Moreover, there was periferal good news.

CEO Kare Schultz in the conference call said that they were near a deal with the US over its opioid drug violations (no longer in focus because so many other companies are now tangled up in this.) He also said TEVA is planning to start making covid-19 inoculations to boost supplies. While I admit that my own favorite Teva chief was Jeremy Levin, an American Jewish Zionist, who was fired stupidly in 2017 when he suggested that the Israeli firm would have to cut back its employment of unionized Israelis, I think Schultz, a Dane, is very competent and better at PR than Levin, who was more of a scientist. The stock lost another 5.05% so far today, after opening at $12, now at $11.32. So what ails TEVA, which means health in Hebrew?

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William K. 2 months ago Member's comment

Thanks for all of the news, VL, and I am glad you got the vaccine, I hope that it keeps you well. But keep on masking because no vaccine is 100%, and I do enjoy reading your posts.