Tuesday Markets Coverage

Today is the last blog before Thanksgiving.

I really wish the president would stop trimming every time he makes a move. Today he tried to put oil prices lower by making 50 mn barrels available but the terms of the order were revealed to have overstated the amount of oil available because over a third was reserve release.

We have a drug company report today from Enlivex of Israel maker of Allocetra against covid-19 for which it is building a plant and hiring staff.It also works on cancer. ENLV Q3 results follow:

Research and development expenses were $2.679 mn for the three months ended September 30, 2021, more than double prior-year level of $1.122 mn, attributable to increases in salaries, expenses for preclinical studies, and R&D activities, clinical studies, and consumption of materials. General and administrative expenses were $1.185 mn for the Sept quarter, up from $837,000 a year earlier, primarily attributable to increases in stock-based compensation to employees and directors and insurance expenses. Net loss came to $3.424 mn, vs only 2.125 mn the year before. With cash on hand of $87.6 mn, ENLV says it can fund expenses to the end of 2023. Enlivex is down 3.43% because people don't believe this.  More drug news after energy. 

Business newspaper article

image source

Energy

*The result was whoopee in the oil patch. Our Schlumberger Ltd (SLB) gained 3.5%. UK oil giants BP and Shell B gained over 3%. Energy Fuels, UUUU, as usual, was the biggest winner, up 7.9% at the opening, but it did fall later. ESTE, Esterbrook Energy, rose 5.6%. Both Shell and BP rose ~3% in European trading today. Shell was upgraded by a brokerage today. 

*Johnson Matthey, which announced it would stop making green hydrogen last week, today won pounds 12 mn from the UK government to convert its plant to making hydrogen fuel cells for vehicles on which it will spend pounds 50 mn. I am puzzled. JMPLY.

Other winners included alternative energy firms like CCJ, Cameco, which mines uranium, up 3.62%. 

*Our cement maker CRH gained 4%+to because it is proposing to use green hydrogen extracted from water to cut emissions, both directly, and using the oxygen to make carbon dioxide to strengthen the cement. This helps offset the energy used to extract the green hydrogen. Its rise also boosted that of Cemex, of Mexico, up 2.8%. 

*Coterra is now expected to earn $1.05, up one cent, and it has been raised from hold to buy. CTRA.

*Grupo Bimbo of Mexico is up 3.6%. GRBMF.

*UK offshore energy ute SSE plc is up fractionally.

*GE was up on hopes for cheaper oil.

But most stocks were down on oil price hike fears.

Pharma

*The opioid trials focused on pharmacies like CRH, Walgreens, and Walmart and not on pharmaceutical makers for a change. 

*Aurinia brass claim that the company which developed a drug for lupus is being stalked by potential takeover bidders. This is to obscure the $250 mn in new debt, options and warrants floated off last week. In the real world the eventual bidders remain stumm until they pounce. 

*Novacure is also claiming to be a target. I think this is the latest whiz for pharma small caps. The market doesn't respond to this. NVCR.

*Pfizer boasted that its lightspeed success with covid-19 will enable it to gain 10 more approvals in the next 15 months for other drugs. This does not compute. PFE.

*Zymeworks of Vancouver Canada dropped 7.2% after reporting its revenue and operations up in Q3. I am mystified but our reporter Martin Ferera is not explaining things as he is away from home in England (a wise move given the floods.) ZYME.

*Organon, the spinoff now is expected to earn only $1.28 in eps in the current quarter down from $1.31 but it is now rated buy not hold. It makes drugs for females. OGN.

*Swiss Novartis gained 1.5%. NVS.

Miscellaneous

*Qualcomm was tipped by Elazar Advisors. It is my largest US holding. QCOM.

*IBM spin off Kyandrylisagain down on selling. KD is the biggest loser in my holdings but with gas prices nowhere near lower the malaise is widespread. 

*Vodafone which reports tomorrow is up a fraction. VOD.

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