Post by Admin/YBB on Jun 12, 2021 9:54:48 GMT -6
Pg 12-13: FOMC Statement and POWELL’s press conference on WEDNESDAY. BOJ monetary policy on FRIDAY.
REVIEW. Clean Energy Fuels/CLNE (collects & distributes natural-gas from animal waste) was the newest MEME stock. Short interest is 8.35% of the float and new stock was issued just in May and June. French TTE is its biggest shareholder. (Other new meme stocks were CLOV, WEN and something looks fishy with those as there are big investors in the background.) (The new SEC Chief GENSLER expressed skepticism on meme stocks, payments for order flow, cryptos.)
PREVIEW. Honeywell/HON and UK’s Cambridge Quantum Computing (private) have formed a new company for quantum computing. HON will own 54% of the new company.
DATA THIS WEEK. Housing market index, retail sales, PPI, capacity utilization, industrial production, business inventories on TUESDAY; housing starts on WEDNESDAY; LEI, weekly initial jobless claims on THURSDAY.
www.barrons.com/magazine?mod=BOL_TOPNAV
BULLISH. Taiwan Semi (TSM; fwd P/E 29.1; clear industry leader; current chips shortage a positive; risks include high valuation, competition catching up, Taiwan-China tensions; pg 16);
Canadian specialty supply-chain software company Kinaxis (KXSCF; fwd P/E 202; does contingency/rapid-response planning rather than routine planning; competition is growing; may be an acquisition target; pg 19);
BEARISH. See other stories.
Pg 14: FDA’s controversial approval of Biogen’s/BIIB ALZHEIMER drug aducanumab/Aduhelm (insurers may balk at $56K/yr pricing) is positive for other similar drugs under development – donanemab by Eli Lilly/LLY, gantenerumab by Roche/RHHBY, BAN2401 by BIIB+ESALY. These drugs work by removal of plaque from brain, but it is unclear if that even helps with Alzheimer; in fact, the FDA rejected the negative advice of an external panel and 3 members have resigned. But having approved one drug for Alzheimer in decades, it is unclear whether the FDA will be more tough or easy on future me-too drugs.
Pg 25: TECH TRADER. Parts of the Internet went down on Tuesday, June 8, 2021, for 49 minutes due to outage (from a bug, not a hack) at Fastly/FSLY, a content delivery network (CDN) operator. This is an attractive business and other CDNs are AKAM, NET, LLNW; some companies such as GOOGL, MSFT, NFLX, AMZN operate their own CDNs. (Basically, CDNs have thousands of servers that distribute national website contents locally for quick access.)
Pg 26: High INCOME/DISTRIBUTIONS with high risks. These vehicles are complex, leveraged, less liquid and have high fees. They may be fine only in good economy.
CLO CEFs (8-14%): ECC, OXLC, XFLT
BDCs (6-11%): PNNT, CCAP, ARCC, OCSL
mREITs (5-10%): PMT, RWT, TRTX, KREF
Pg 30: MUTUAL FUNDs. Mike GUSH and Sophie EARNSHAW of emerging market growth BGEGX (M* says EM LC-blend) look for long-term opportunities and don’t shy away from volatility; ESG factors are also included. Top 10 holdings account for 40.7%.
Pg 32: Lauren WOLFE and Christian ASMAR, Impactive Capital (2019- ). They run a concentrated hedge fund with value and patient/cooperative/persuasive ESG orientation.
Pg 34: ECONOMY. Higher wages may not cause inflation. Much of the reported rise in wages is at lower wage levels. Also, there is a weak connection between wages in one industry and prices in other industries. There was wage growth in 1990s without inflation.
(EXTRAS from online Friday that didn’t make the weekend paper version)
None
REVIEW. Clean Energy Fuels/CLNE (collects & distributes natural-gas from animal waste) was the newest MEME stock. Short interest is 8.35% of the float and new stock was issued just in May and June. French TTE is its biggest shareholder. (Other new meme stocks were CLOV, WEN and something looks fishy with those as there are big investors in the background.) (The new SEC Chief GENSLER expressed skepticism on meme stocks, payments for order flow, cryptos.)
PREVIEW. Honeywell/HON and UK’s Cambridge Quantum Computing (private) have formed a new company for quantum computing. HON will own 54% of the new company.
DATA THIS WEEK. Housing market index, retail sales, PPI, capacity utilization, industrial production, business inventories on TUESDAY; housing starts on WEDNESDAY; LEI, weekly initial jobless claims on THURSDAY.
www.barrons.com/magazine?mod=BOL_TOPNAV
BULLISH. Taiwan Semi (TSM; fwd P/E 29.1; clear industry leader; current chips shortage a positive; risks include high valuation, competition catching up, Taiwan-China tensions; pg 16);
Canadian specialty supply-chain software company Kinaxis (KXSCF; fwd P/E 202; does contingency/rapid-response planning rather than routine planning; competition is growing; may be an acquisition target; pg 19);
BEARISH. See other stories.
Pg 14: FDA’s controversial approval of Biogen’s/BIIB ALZHEIMER drug aducanumab/Aduhelm (insurers may balk at $56K/yr pricing) is positive for other similar drugs under development – donanemab by Eli Lilly/LLY, gantenerumab by Roche/RHHBY, BAN2401 by BIIB+ESALY. These drugs work by removal of plaque from brain, but it is unclear if that even helps with Alzheimer; in fact, the FDA rejected the negative advice of an external panel and 3 members have resigned. But having approved one drug for Alzheimer in decades, it is unclear whether the FDA will be more tough or easy on future me-too drugs.
Pg 25: TECH TRADER. Parts of the Internet went down on Tuesday, June 8, 2021, for 49 minutes due to outage (from a bug, not a hack) at Fastly/FSLY, a content delivery network (CDN) operator. This is an attractive business and other CDNs are AKAM, NET, LLNW; some companies such as GOOGL, MSFT, NFLX, AMZN operate their own CDNs. (Basically, CDNs have thousands of servers that distribute national website contents locally for quick access.)
Pg 26: High INCOME/DISTRIBUTIONS with high risks. These vehicles are complex, leveraged, less liquid and have high fees. They may be fine only in good economy.
CLO CEFs (8-14%): ECC, OXLC, XFLT
BDCs (6-11%): PNNT, CCAP, ARCC, OCSL
mREITs (5-10%): PMT, RWT, TRTX, KREF
Pg 30: MUTUAL FUNDs. Mike GUSH and Sophie EARNSHAW of emerging market growth BGEGX (M* says EM LC-blend) look for long-term opportunities and don’t shy away from volatility; ESG factors are also included. Top 10 holdings account for 40.7%.
Pg 32: Lauren WOLFE and Christian ASMAR, Impactive Capital (2019- ). They run a concentrated hedge fund with value and patient/cooperative/persuasive ESG orientation.
Pg 34: ECONOMY. Higher wages may not cause inflation. Much of the reported rise in wages is at lower wage levels. Also, there is a weak connection between wages in one industry and prices in other industries. There was wage growth in 1990s without inflation.
(EXTRAS from online Friday that didn’t make the weekend paper version)
None