E Industrial Uncertainty

Having begun the tale of DebenhamsJ.P. Morgan's first American Depositary Receipt stock of 1920, a favorite place for US shoppers, which went bankrupt last April, I wanted to tell you how it ended. The store was bought by Boohoo (a name Pierrepont would not have accepted) for £55 mn for its intellectual property, meaning the ability to sell cosmetics and beauty products, sports equipment, and household goods, which Boohoo will add to its offerings online.

The outlook is mixed today as Janet Yellen was confirmed as Treasury Secy but her program of “going big” on stimulus is uncertain. While the Senate may let the measures go through without a filibuster from the Republicans, there is less than unanimity among the Democrats for the steep payout and the $15/hour minimum wage, and other pump-priming measures are also uncertain. What will happen is that federal lands will be temporarily barred from oil and gas development and the ghastly pipeline from Canada will not be built. Apart from GE and Verizon VZ, the outlook for many industrial firms is uncertain. With Republicans refusing to vote to impeach Trump it looks like they will bear his legacy and wind up losing to the Democrats.

Industrials

*Qualcomm, QCOM, fell 1.4% after it announced major moves in the driver assistance arena. It will offer its Snapdragon program to Amazon's Alexa and GM. QCOM will also offer its Cockpit platform with Swedish Veoneer, VNE, sold. The multiple moves scared the market.

*Our pick for 2021, Cosan of Brazil, after a messed up proxy vote on its consolidating offshore haven assets, today gained 4.25% as wiser heads prevailed. The new shares will replace the current ADRs and trade as CSAN rather than as CZZ, and those wanting out will be bought out, so CZZ should hold its price. It dropped despite the buyback promise because the proxy document was impenetrable. 

*Royal Dutch Shell (RDS-B) bought 100% of an outfit running recharging stations under British lampposts, called Excharger, for an unknown price. It is 13th in electric batteries in the UK but actually a German firm. Shell rose. The new chargers will supplement those Shell has at its gas stations.

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William K. 1 month ago Member's comment

A whole ot of information but not a lot of discussion. AND, Prayer does work, BUT sometimes the answer is NO! Like Jagger once sang, " You can't always get what you want."