E Calm Markets Day

*Cenovus Energy reported good progress on integrating its buy of Husky Oil properties in Alberta and Saskatcheway at the start of this year. But the move worries shareholders and the CVE claim that it will deliver $1 bn in synergies this year and $1.2 bn next was not believed. So the shares were down despite production of 770,000 bbls of oil equivalent in the quarter, and fund flows of $1.1 bn, cash from operations of $228 mn, free cash flow of $594 mn, and even net earnings of $220 mn failed to boost the share price. (Data in loonies.) Production rose 59% in Q1 thanks to Husky. A year ago it had a Q1 net loss of $1.8 bn.

The loss this year was from inventory risk management and offset by gains for transport and storage. It also had record production at Liwan Gas (offshore China.) Also worrying, CVE ended Q1 with net debt of $13.3 bn up from $13.1 bn at the start of the year, mostly because of non-cash working capital up $902 mn because of higher accounts receivable. It aims to cut debt by the end of this year to $10 bn or less. Q1 was still a period of lockdown hurting oil prices and refinery output, from which CVE is seeing some recuperation now. The share dropped a half percent to $7.93 on the NYSE but was maintained as a buy by Tudor, Pickering & Holt, and by CFRA.

Miscellaneous

*Tomra Systems of Norway, maker of recycling and sorting systems, gained 5.83% here with its real ADR, TMRAY. It goes ex-div next week.

*China had another unsuccessful IPO, for insurance tech site Waterdrop, priced at the top end of the range by seller Tencent. The WDH ADR fell 8.5% at the opening here today, being priced for perfection. Now it's off 14.2%. Prosus and Naspers gained 2.9% and 1.91%. PROSY and NPSNY cut their TECHY holdings. Our Asia insurance stock, AAIGF, AIG Hong Kong, rose 3.4% in relief.

*Cement is mixed with Irish CRH up 1.11% and Mexican Cemex, CX, down 0.12%/

Tech & Tel

*Mercado Libre opened up 3.32% more. But Coupang of South Korea fell 2.05%. MELI; CPNG.

*Nio rose 0.64%.

*Tower Semiconductor (US-Israeli) rose 2.6%. TSEM.

*Morgan Stanley analyst Dominick Olszenski published a call (written up by Dow-Jones) to sell Ericsson and buy Nokia. NOK gained 4.52% to hit $5.09. ERIC rose to $13.90 at the open. Vodafone, VOD fell 1%.

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