Friday file

We are in the Jewish harvest festival period, called Sukhot, when the reading is "vanity, vanity, all is vanity" from the prophets. The portion also includes the timing of the harvest: "for every thing there is a season: a time to be born, a time to die. A time to plant and a time to reap." You are supposed to dine in a hut with nothing but branches over your head, something hard to do in an apartment, but you can hold a citron and jiggle a palm frond, other marks of the holiday.

That rally did not take long to unwind. There were many reasons, first nothing for the global lenders to Ever-red as opposed to those in China, who were covered by Beijing. In theory Everpetite has 30 days to pay up but of course it doesn't have the needed cash.

Bill Browder, who made a fortune with Russia investments urged people to not invest in China after travel stock HNA crashed after its executives were arrested by the PRC for alleged fraud. Morningstar echoed Browder. China is now out for these gurus. 

Chinese authorities also cracked down on crypto currency trading declaring them all illegal, whether native or foreign. It looks the US is also aiming to block this market too, if less totally. The PRC has proven to be a rotten place to invest in lately after shining in the first half of this year. While I am willing to blame Beijing, the ambiguities over Sukhot may also explain why Wall Street is in trouble. The higher bond yields also had an impact. If you get a decent return from bonds you sell shares to buy them. But the main reason markets fell was that they had been rising too fast and steadily.

Then there is what the Brits call loo paper, which Costco is rationing how much people may buy. We're next for toilet paper.

Another problem turns out to be sneakers. Nike told the world that supply chain congestion was causing losses from making sneakers, and the stock fell 6% at the open. Its problems appear to be generalized which means other global brands face similar issues. But as always there were exceptions.

 

The good news about tumors continued today with Merck and Astra-Zeneca reporting that their Lynparsa in Phase III trials slowed down prostate cancers' growth.

Roche and Regeneron got their covid 19 monoclonal antibody treatment approved by the WHO, good news. But it also called for the sharing of its data with producers of biosimilars, which will nip their potential profits from the treatment.

Cabot Oil, COG, rallied after the consensus forecast rose 0.004%. It is doing a complex merger. I own this one. 

Hoegh, HMLP-A, announced another deal by the parent against the interests of owners of its finance sub with a contract to charter an LNG tanker, the Hoegh Gallant at a lower price than in the past until mid-2025. Moreover half of capital spending on the vessel will remain an obligation of the partnership although it will not get the money. 

China's Tencent rallied because it is not as Chinese as some other companies, although this may not work with the new pressure on Hong Kong financials by Big Brother. But backdoor plays on the Hong Kong stock, like Prosus, fell some more.

The real estate wobble took down our Fibra Uno which operates in Mexico, FBASF. I don't think there is any reason for this except analogies.

My best performer, US Thermo Electron, rose another 1.75%. My worst performer was UUUU, Energy Fuels which crashed 7.7%. I bought more but the stock fell further. It competes with China in rare earths, but there is fear China will undercut it. I think the PRC will not pay much attention to small caps like this one. 

My best non-US performer was Greencore, the Irish prepared food maker, which only trades occasionally. It rose after an internal buy for its workers did well in the last quarter. 

Japanese zaibatsu Sumitomo rose again by 2.5% while Mitsubishi did not.

 

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