E Better Than The Maestro

If Pres. Trump tears up the Iranian deal it will not affect the Netherlands or France as the EU group of countries signed the de-nuclearization agreement with Teheran in their own right.

*Delek Group (DGRLY) is acquiring its pro rata share of new registered participation units in Ratio which were issued to fund the Israeli firm's offshore exploration and production in Guyana-Surinam, Malta, Ireland, and the Philippines. This follows earlier moves by DGRLY into offshore oil operations in the UK North Sea and Canada. Delek via subs is partner with Ratio in the Leviathan offshore Israeli gas field.

Yesterday Delek also said that its subs which own 45% of Leviathan got a binding agreement from UK branches of HSBC and JP Morgan banks for a $1.5-1.75 bn financing package to finance phase I development of Leviathan field, the largest ever Israeli project financing deal.

*BP plc (BP) will buy next year a 10% stake in the Zohr field offshore Egypt from ENI of Italy for $375 mn plus an option to buy another 5% stake by 2017 by paying more. It will also pay funds not yet determined to reimburse past exploraing spend by ENI since the field was discovered in 2015. It holds an estimated 30 trillion cu ft of gas, more than Leviathan.


*VALE and its jv partner BHP-Billiton (BHP) will each pay US$181 mn for environmental remediation and compensation over the Samarco dam bust just over a year ago in Brazil. This will come out of VALE's reais 3.7 bn provision created in Q2 (about $1.1 bn). The partners will also pay up to $115 mn each in short-term credit lines to Samarco in H1 of 2017 for support which may not include restoring production.

*Chartists InvestorsIntelligence.com called CRH plc (CRH) a bull as it "unwinds into price and relative uptrend", whatever that may mean. CRH is Irish and considered to be a US infrastructure play, but these guys are late to the party.

Drug Dealers

*TEVA of Israel will market an inhaler to deliver medical cannabis to manage pain using an inhaler made by Syqe Medical, also Israeli. The device will init​ially be sold only in Israel.

Separately, TEVA is shutting in an Allergan (AGN) generics plant in Malta and cutting about 200 jobs there by 2018.

*GlaxoSmithKline (GSKis challenging erythropoiesis injections to boost red blood cell production to treat kidney disease patients with anemia. GSK's daprodustat is a hypoxia-inducible factor prolyl hydroxylase inhibitor based on how blood pressure reacts to high altitudes. It also may help keep down their blood pressure. GSK was raised to bull by investorsintelligence.com, UK chartists, today, along with rival drug firms including Astra-Zeneca (AZN) and Indivior.

Las Latinas

*My post-Castro play, Copa Holdings (CPA), a Panama airline, turned out to be a loser on Fidel's death although a major holder of the CPA shares, Herzfeld Caribbean Basic Fund, ticker symbol CUBA, soared 18% on the opening today. CPA is down about 3% on the assumption that it will lose its rank as more Miami to Havana flights are booked. We don't own CUBA any more after the stock went ballistic as the easiest Havana buy when the US eased restrictions on travel there last year.

The selloff may be because US airlines and the DJ Transportation index have reached resistance levels. But I am sticking with CPA after selling it way too soon the last time we tipped it, as we are following Warren Buffett into airlines.

*Mexichem (MXCHFis up nearly 6% in pesos in local trading.

*Canadian language software firm Lingo Media Corp (LMDCF) lost 34.55% this morning. Thanks to support from Telefonica of Spain LMDCF is offering English-language teaching programs widely in Latin America. It reported Q3 revenues of C$152,657 on which it posted a net loss of C$581,710, equivalent of 1.6 loony cents per share. Its CEO Michael Kraft boasted that it has a growing pipeline and will recognize revenues as contracts are signed. He added: “Buyers are mostly governments and educational institutions with long sales cycles.” Year earlier revenues were C$1.2 mn on which the small cap startup had income of C$740,746 or 2.3 loony cents/sh. So this is a bummer but operating expenses did not change significantly despite the new hires and other moves like cutting its debt.

*Vale is up another 4.4% today to $8.8 after we sold half too soon. It is at another 52-week high. I still remain a skeptic about Brazil ever achieving Order and Progress (the national motto) given the continuing rise in indictments of politicians over the Petrobrascar-wash scandal and the likely slow-down of Chinese construction for which it supplies the iron ore raw material.

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