E Monday Markets Unhinged

Businessman, Internet, Continents

Today's stock market is somewhat unhinged because so many foreign markets are shut for a bank holiday: Britain, China, Thailand, Japan—but not other European markets or Hong Kong's. Hong Kong fell. Being the only major market open today made it easier for stocks to rise, and as I write the Dow Jones Industrial Average is up about 300 points.

Today's Financial Times reported that 41 SPAC's, special purpose acquisition companies, which solicit investments without naming or often even selecting the target they will buy, issued during Q1 this year, almost all failed to remain at their high issue price. The pink paper also reported on the most overpriced company acquired with a SPAC, Hometown, a tiny deli in Paulsberg, NJ not far from Philadelphia, which is valued at $13/sh, or $100 mn, in fact had total sales last year of $13,976. Unlisted Hometown, traded on the pink sheets, was promoted by a legitimate-looking Hong Kong institutional advisory firm which backed its capital increases totalling $2.5 billion, which ensnared the endowment funds of Duke and Vanderbilt Colleges. More on SPACs below.

My favorite US covid-19 stock, Clorox, is down ahead of more anticipated good news about the virus. The news cycle will get moving tomorrow when most foreign markets reopen and there will be a host of reporting companies.

Energy & mining

Schlumberger Ltd rose 5.1% today in the pre-market, effectively Paris because London was closed., with the stock hitting $27.73. It is now at $28.41.

Energy Fuels, which plans to extract rare earths from uranium fuel sands, is up ~5.2% today.

BP plc announced that it will build a second wind farm off the coast of Scotland, part of its new green energy initiative.

”Gold Mining Bull tipped” Kirkland Lake Gold, (KL) which gained $5 to reach $38.6. We are still down from our basis of $44.9/sh. Gold is up 1.44% to boot.

Cameco gained 8.84% today on heavy volume. CCJ was given a TP of $25 last month by Scotiabank. Its sub Uranium Royalty Corp (URC) sold 348,060 pounds of uranium ore today to Yellow Cake plc for $28.73/lb. All are Canadian but uranium is priced in US dollars. URC is getting Russian Uranium from Kazatomprom JSC bought by CCJ and will be buying more.

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Flat Broke 1 week ago Member's comment

Thanks for the share. Seems like almost everyone gets the day off today but us!