E Hairy Trading Before Daylight Savings

An article about rare earths by Myra Saefong in Barron's (from MarketWatch where she covers commodities) failed to mention our Energy Fuels (UUUU) developing rare earth extraction from uranium sands in the US, Canada, and Europe. It is more appealing than a rare earths fund. Barron's wrote up telcos tipped by BofA-Merrill, but failed to mention BCE from Canada, a growth and value stock up 10% in the last month. We recommend it for its 6.18% safe yield.

CAE issued 10,454,545 new shares at $27.50 last week, only in Canada, including green shoe options. The stock closed at $28.14 on Friday, but traded as low as $25.25 and as high as 29.99. The money will pay for buying US-based L3Harris (LHX), a military training and technology firm, for $550 million.

Among the heavily traded shares last week were a couple of our favorites: Nio (NIO), which rose 19.4%; and Nokia (NOK), up 8.8%. NIO rivals another electric vehicle maker, while NOK is a play on 5G telco. Vodafone (VOD) turns out to have been a major source of revenue for Greensill Capital, which filed for bankruptcy last week. It will find another fund source.

Royal Dutch Shell (RDS-B) said its PA petrochemical complex goes operational next year. Taiwan Semi (TSM), a near 20% holding of our Taiwan Fund, lost 2.1% last week on the chip shortage. TWN rose 3%.

AIA Group Ltd of Hong Kong (AAIGF) reported Friday on its full year 2020, but my brokerage, TD Ameritrade-Schwab, failed to cover this. It reported a volume of new business up 33% to $2.765 billion, most from Hong Kong itself (up 66%), but also 20% from Mainland China where it is the only foreign-owned insurer allowed to operate, currently in Tianjin and Shijiazhwang, and it just added Sechuan.

It eventually will operate in 11 more provinces and municipalities by 2030, four times as many as now, as long as China allows this. In China, it increased sales by 5% early in the FY (February through March), but then lost about a third in the rest of the year. The same pattern applied in in Asian markets, where it is a key player in Thailand with 15% market share; Singapore with 11%; Malaysia with 7%; and other places with 17%.

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Mike Sharon 1 month ago Member's comment

Good article, thanks.