E Terrible Tuesday

Today is a terrible Tuesday, with oodles of news to cover and reporting companies from our holdings. I am not discussing Fed head Jerome Powell's testimony before the Senate Banking Committee.

But I will explain why our Brazilian top pick for 2021 crashed Monday. Cosan, CZZ, was the innocent by-stander when O Pres. Bolsonaro decided to fire the CEO of Petrobras, which led to a 21% drop in PBR's price and havoc in the bolsa (no relation to O Presidente). Today CZZ, a private company he cannot order around, regained 6.3% so far, hitting $20.01 briefly. It is still up 4.35% at $19.68.

The reason Tesla TSLA is falling in double digits is not that electric vehicles don't sell. Its stock price is now tracking the price of bitcoin. This is an argument for another electric vehicle stock we own which fell hard, NIO, down 8% to $46.64 today although it is paid in cash, not bitcoin. The cause is said to be higher interest rates. We sold 67% of our stake in NIO but I am sniffing around for another move in. It is now upgrading its battery recharging system in China, which keeping prices lower rivals.

U.S. dollar banknote with map

Image Source: Unsplash

Please note that there will be no blog Friday and no charts over the weekend as I am going to Boston for the Bar-Mitzvah (Jewish coming of age ceremony) for my youngest grandchild, now 13. The charts from last weekend are now nullified by market falls. More now for paid subscribers including results:

*Scotiabank, BNS, today reported earnings and sales in C$s which beat for its Q1 2020-21. Its per share earnings hit $1.88 vs a consensus forecast of $1.56, and was up from the $1.45 from the final quarter of 2019-20 and from the prior Q1 of $1.80. Its adjusted revenues hit $8.07 bn beating the prior quarter level of $7.15 bn but below the prior Q1 (pre-covid) of $8.14 bn. For the quarter it created a $764 mn provision for loan losses, well down sequentially for the $1.13 bn level of Q4. It was also lower than the provisioning for Q1 2020-21 of C926 mn.

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