E Third World Populism

*Also gaining from auto hopes is Japan's robotics firm Fanuc, up 3.7% to $16.25, still below our purchase price. In fact, FANUY is not as much of an auto supplier as assumed.

*Chinese robotic manufacturer Hollysys Automation rose 4.6% today perhaps because the railway bridge to Hong Kong is still standing, perhaps because there will be more trains to build as China pushes consumer spending. HOLI.

Other China stocks like CEA (airline) and AIA Group of Hong Kong (AAIGF insurance) rose.

*Israeli's Tower Semiconductor was maintained as a buy by Jefferies brokers and rose 5.87% to $4.80 today, still well down. TSEM was my worst recent pick.


*Swiss Novartis is in a health crisis over its US sub Genentech. After its pipeline review, it cut a fifth of its 430 drug pipeline projects. That is 90 products, a high even for major drug culls as were done by other firms.

But the reason is not only worries about their marketability. Four staffers here (of Chinese heritage) supplied trade secrets to a Taiwan maker of biosimilar drugs, JHL Biotech. The drugs included Avastin, Herceptin, and Rituxin—all cancer meds.

*While Roche gained 2.7% today and drug shares generally were up, NVS only gained 0.5% because of uncertainty.

*GlaxoSmithKline sub ViiV put out good results yesterday on its 2-drug regimen for HIV using injections. I overreacted to the idea of oral medication but the viral suppression was also very good with monthly jabs of cabotegravir and rilpivirine. These are meds which await regulatory approvals and I don't want to lead anyone living with HIV astray. GSK also discovered leakage of trade secrets in its Philadelphia site, to Renopharma, of Mainland China, discovered by an FBI investigation.

*I cannot make out why the Mexican airport veto is hurting Grupo Bimbo. GRBMF lost 4.1% today.


*Fibra Uno, our Mexican REIT, fell 5.2% on fear of populism which may interfere with its main tenants, foreign company offices and shopping malls.

*Japan Smaller Cap Fund, JOF, is up 1.45% today after it reported on H1 numbers (to Aug. 31) showing its NAV per share fell 9.6% but its price fell 12.8% in the quarter. It closed the quarter at a discount of over 14% of the NAV. A small cap fund requires research and savvy and cannot be replaced by a robot.

*Thanks to its buyback plans, Mexican Equity & Income overcame negativism about AMLO and rose 1% more.

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