E China Left Out

MSCI opted against index entry by PRC A shares. This translates to saying that the developer of performance stock indexes for stock picking, Morgan Stanley Capital International, decided it was premature to allow locally-traded Chinese shares to become part of its main widely-tracked index. This means exchange-traded funds will not have to add Chinese stocks to their pile and boost Shanghai and Shenzhen stock prices beyond the current bubble. While limitations on foreign investment apply in Chinese markets the benchmark would only have put Chinese stocks at 5% of the MSCI index.

To soften the blow, MSCI stated that “it expects to include China A‐shares in its global benchmarks after a few important remaining issues related to market accessibility have been resolved." The means that if foreign investment ceilings are raised, China could eventually account for 40%+ of the MSCI emerging markets index. (EEM)

My account is slowly wending its way out of E-trade and over to Interactive Brokers. I am banned for talking about it to other E-trade customers according to a communique I just received which reads:

Dear E*TRADE Customer:

The E*TRADE Community ID below has been restricted per the Terms and Conditions of Use of the E*TRADE Community you agreed to as a member. As a result, you will no longer be able to post content to the E*TRADE Community, though you can still view content posted by others.

Community ID: globalinvesting

Of course this is censorship to stop complaints on-line against the brokerage's decision to halt its global trading system which I have used for a dozen years and recommended to readers.

Developed Countries

*Teva (TEVA) is in deep doo. First a PA judge ruled that its law firm, Kirkland & Ellis, should not be assisting it with its unfriendly bid for Mylan because it had earlier worked for MYL, which is bitterly fighting the takeover and seeking to spend its cash hoard to block this.

Worse still, Teva is being sued by a group of US states in the NYC Federal Court for allegedly paying US doctors illegal fees for prescribing its multiple sclerosis drug Copaxone and its Parkinson's one Azilect from 2011-2013. The payments were disguised as fees for lectures or consultation and apparently were as much as $1500-$2700 per prescription. The lectures often had no audience except for Teva employees.

We all know that drug companies are in business to find cures for diseases to help mankind, right?

*Belgium's Galapagos NV, now listed as GLPGF-Q, will release results of its 24-week phase 2B trials of JAK inhibitor filgotizib against rheumatoid arthritis now that they have been completed. The two trials are called Darwin 1 and 2, which is cute. Phase 2 trials aim to set dosage levels and GLPG has already reported that the dose-linked results are statistically significant. It will give details from Darwin 1 in late July and Darwin 2 late in August. Crédit Suisse in Wednesday upgraded the share to outperform from market perform with a $61 target price, joining analysts at Cowen & CoCrédit Agricole, and Morgan Stanley on the GLPG bandwagon since its move to Q. Thanks to our former biotech maven we told you first.

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Comments

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Kate Monroe 3 years ago Member's comment

Hi Vivian, I'm confused about Galapagos. I'm not sure what you mean by now listed as GLPGF-Q. Since mid-may it has been listed on the Nasdaq as GLPG, and it already traded on Brussels and Amsterdam as GLPG. I think it was GLPGF on the otc before it listed on the Nasdaq. Anyway, I appreciate you bringing this interesting company to my attention, but would like to know where you think is the best place to buy it.

Vivian Lewis 3 years ago Author's comment

hello Kate Monroe

I own the Belgian-Dutch shares, GLPGF because I bought before there were ADRs. my broker advises not converting them to avoid annual ADR fees and conversion fees. Not every company which does a US secondary issue offers automatic conversion, so you do have to pay a reorganization fee and annual ADR fees.

However, were I to be buying today of course I would buy on Nasdaq because the commissions would be lower.

Wendell Brown 3 years ago Member's comment

Ms Lewis, the market doesn't seem to be too worried about TEVA, the stock has been on an upward trend all week and is the highest it's been since the beginning of May. Do you expect a delayed reaction to this news to be reflected in the price?

Alexis Renault 3 years ago Member's comment

Wow, can't believe e-trade banned you. Did you reach out to try to find out why? Perhaps it was the "way" you reached out to others rather than reaching out others. What kind of comments did you post?

Vivian Lewis 3 years ago Author's comment

dear Alexis Renault

I am the editor of www.global-investing.com and when e-trade in April announced it would end its global trading facility I wrote about it and began the hassle of moving my account. The guy who was my relationship manager left the firm. And then someone decided they did not like being criticized, not on their site where I never wrote anything, but in the newsletter I edit. They just withdrew the ban today so I guess they thought better of it. It looks bad because I never wrote anything except the facts

Vivian Lewis 3 years ago Author's comment

no comment? does anyone read my blogs?

Tom Callahan 3 years ago Member's comment

Lol, I do and even followed you but am not much of a commenter.

I was wondering though if you know if the case against Teva has any merrit? And if so, what kind of penalty would it face if found guilty? I can't imagine that will be good for it's stock price, but then again, it seems that big business can get away with skirting (or even breaking) the law, time and time again.

Vivian Lewis 3 years ago Author's comment

like Wendell Brown, above, I noted that the market is pretty calm about threats to Teva because the stock has held up well. But I am not enough of an expert in whether or not there were illicit payoffs for prescribing Compaxone and Agilect and what the penalties might be. For whatever it is worth, Teva has a deep bench of lawyers and has always done well in US courts.