E FOMO Trend Caught On

Today the market bounced up some more as the FOMO trend caught on. It is a normal reaction to a good day on Wall Street but the pattern usually ends with another reversal. Once again there is movement in the pharmaceuticals sector, my main overweight.

Here is some good news for our shares:

Energy Users

*Today Hindenberg short-seller won confirmation that Nikola management under Trevor Wilson misrepresented its ability to run an electric truck by rolling it down an incline 2 years ago. It also covered up the labels for components from other companies it depended upon. This took NKLA down 8% in the bull vs bear stakes despite Mr. Wilson buying $1.28 mn worth of its stock. It also hurt GM which made a deal with Nikola. But other electric vehicle startups did well, not just Tesla, but also NIO of China, our play, which gained another 5.7% at the opening. It hit a new 6-mo high but then fell back.

*Canadian Solar, CSIQ, was tipped by Max Deml who says to warn you that it is of Chinese ownership. I am prepared to buy China stocks that are listed on a major market and have GAAP reporting rules. It rose 5.1% today. I own Chinese shares outside the military and minority regions.

*BAE Systems got an order from Aerion Supersonic (ASZ) for fly-by-wire systems for small planes, which means BAESY will scale down and cut weight for computers and electronics in flight control.

*Mauritian Azur Power despite meh results is up 7.4% today. I got a 450-page annual report from AZRE, the worst waste of paper in my investment life. AZRE is effectively controlled by the Caisse de Dépôt, the official Quebec retirement fund with another big stake by the World Bank private business arm, the International Finance Corp.

*Algonquin Power of Canada rose 1.9%. but is still off from its pre-COVID-19 highs. AQN

Drugs

*There was hot news from one of my pharma shares, Exelixis, a US firm which announced pre-clinical data with Iconic Therapeutics for treating solid tumors with a combination of anti-tissue factor antibody and a linker-payload, EXEL did a deal in May 2019 to get an exclusive option and license for ICON-2 in oncology. As Martin Ferera reports from Canada, there is another winner in this hoped-for cancer breakthrough, the linker-payload maker which is a Canada stock he covers, Zymeworks.

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