E A Sell-Off Day

Credit Suisse's C. Parkinson raised some question: 1) an update on capital allocation after required equity stakes are sold; 2) whether farming inputs in the USA given agriculture trade policies; 3) how is synergy working out: 4) future phosphate outlook; 5) what about Asian contract delays; and 6) what about freight issues in Brazil? I am sticking with BCD for its 5.5% dividend and habit of raising the rate every year.

*Barclays reported a profit this Q2 vs a loss last year. The may affect our ability to continue to book a nifty divvie from its non-cumulative preferred, which can be called.

*Germany's E.On reported that it had added 50,000 retail clients there in Q2 and the stock bounced nicely so we are, Endlich (finally) in the black on the German ute stock EONGY.

Healthcare

*Mazor Robotics sank an unbelievable 18% after reporting adjusted losses for its Q2 after losing 11% pre-market. Revenues fell to $13.2 mn from prior year's $15.5 mn, nowhere near the Capital IQ consensus forecast of $17 mn. Net loss was 3 cents vs a 5 cent loss in Q2 last year but restated to $3.9 mn, up $100,000 from last year, or 7 cents/sh vs 8 cents.

The Israeli maker of surgery assist software blamed the lower prices imposed by its US distribution partner Medtronics but which helped its robotic sales rise 25% in Q2 and 32% in H1. The Medtronic arrangement was subsequent to Q2 2017. It is now being spread worldwide after starting with the US.

Other Q2 metrics also were down, gross margins to 56.1% from prior year 69.4%. However, operating expenses at $11.3 mn vs $14.6 mn a year ago reflected lower marketing costs. H1 operating losses fell to $5.3 mn from $9.6 mn in H1 2017. This is how a transition looks and the selloff is excessive. At $51.60 and pennies I would be buying more had I not already quadrupled my money.

*Canadian Nutrien reported earnings of $741 mn ($1.17/sh) and adjusted earnings of $1.48/sh, the adjustments relating to costs related to its formation via the merger of Potash with our former Agrium, share buy-backs, and compensation because of the merger, and other one-offs. It reports under IFRS but in US$s. Its costs are mostly in loonies so it gained on forex changes too. EPS even adjusted beat consensus estimates by 8 cents.

EBITDA at $1.5 bn in H1 up 10% was boosted by the retail clout AGU gave the combo with its distribution network. The biggest factor, however, was the sale of Sociedad Quimica y Minera de Chile, SQM, and Arab Potash of Jordan, which will provide $5 bn of funds in the course of this year but were required by competition rules. There will be more non-comparables because of the buy of Waypoint Analytical and Agrible during Q2 and more investments to come. In addition, the creation of NTR is said to have generated $246 mn in run rate synergies so far and by the end of the year will hit $350 mn.

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