Default Avoided

Today we had some weird data from Tomra Systems in Norway which was not supposed to be given until Nov. 2, next Tuesday. TMRAY is a stock in the recycling and sorting business, very green for Norway, an icky oil producer, but it is still not allowed to jump the gun on its quarterly results. Moreover, the data is on a website to which I occasionally contribute and I don't want them to be penalized. The stock rose 4.4% in US trading today

The Chinese real estate firm Evergrande managed to pay the interest it owes to foreign bondholders, thereby avoiding default, although this is weird too.

Photo by Annie Spratt on Unsplash

More follows including some expected results:


Oil is in short supply in the US as 4 mn barrels have been removed from the Cushing, OK, storage facility in the last 2 weeks. Only 31 mn bbls are now available.

*Schlumberger Ltd duly reported today and while its profit was up if barely vs last Q3 its revenue missed so the SLB stock fell 2.48% in European trading and was down 2.45% here. It suffers from a very high price-earnings ratio of 47x which was another cause of the drop. However, the company in its conference call predicted that it would end the year with double-digit revenue gains and margin expansion. It expects solid free cash flow in part because YTD it has cut its debt by $1.43 bn. Note that its divestment of OneStim means its revenue levels are not comparable from last year. With these caveats it had net earnings of $550 mn this year vs 82 mn a year ago. It now is down only 0.5% as wiser heads moved in.

*Goldman Sachs rated Coterra Energy, a US outfit created by a merger last month, as a buy and the share hit a new high at $20.78. CTRA.

*Swedish Autoliv which we sold missed both in earnings and revenues today. Phew. We got out in time. It makes auto safety systems. ALV.

*ABB of Switzerland which reported meh earnings yesterday, today recovered after UBS said it can overcome its supply chain difficulties and rated it a buy. Investor, a Swedish fund, which owns both ALV and ABB today gained 2.1%. IVSBF.

Other sectors

*Veolia VEOEY rose another 2% as it aims to take over a rival French ute group, Suez. SZEVF.

*Gold miner Kirkland Lake rose 2.5% today. KL reports Nov 3 in theory. It is estimated to earn 0.873 per share. KL has beaten forecasts in 3 of the last 4 quarters.

*Swiss Roche won from our US FDA permission to use another test besides its existing one to determine which lung cancer patients would benefit from Tecentrique treatment. RHHBY.

*Banco Latino-Americano de Comercio, BLX of Panama, was tipped on a website talkmarkets by Tomas Andrade Campanini. I like it too. It is a multilateral bank listed on the NYSE which lends for foreign trade.


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