E Trump Russia Reset Is Redundant


*Lingo Media of Canada dropped 20% yesterday after protraderdaily.com, a UK tracker of moving averages said it was ahead of both its 50- and 200-day averages. LMDCF is already in the cross-hairs because of delays in its planned merger with US SchoolD, another edu-tech firm which offers free online and mobile app advise on matching students to colleges. The merger is being delayed until July 31 from an earlier June 30 target date. The real risks is that SchoolD may be suffering from the DeVry scandal because this outfit promised levels of pay and promotion which its courses did not fulfill.

The planned merger of equals will be followed by a private placement. SchoolD is considered by US News & World Report to be a “must-have” for international students and is run out of San Francisco where it was developed by Vested Finance Inc. I am holding back buying more lest there be more dirt around the schoolroom.

*Susquenhana has cut its target price for Infosys to $13 from $15 after the Indian software giant made a commitment to hire 2000 Americans for tech jobs in North Carolina by 2021, and 10,000 in the US overall. The new tech hubs are an attempt to escapte the uproar over INFY's use of H-1B visas to bring highly-skilled workers to the US temporarily. Indians account for about 70% of the H-1B visas issued. INFY moreover agreee to pay fines of $34 mn to settle claims from the US Dept of Justice and $1 mn to NY State for tax evasion and underpaying Indian workers by using travel visas rather than H-1B ones. The Industrial Commission of North Carolina, home of the Research Triangle, opted to change its rules to make it harder for Indians to work temporarily in the state and denying their employers the right to receive NC job-creation grants. The NC bill will deny companies the right to use visas to meet job-creation levels in incentives contract. Along with concerns that INFY brass are overpaying themselves, this is enough for us to exit INFy entirely before it reports in its Q1 July 14, Bastille Day.


*BP plc informed the world that 5 of its new concessions are for natural gas rather than oil, a cleaner fuel. It may buy more of the Abu Dhabi State Oil Co (ADNOC) which is seeking to publicly list its shares in some operations. BP currently owns 10% of ADNOC, as does Total. Each paid $2.2 bn for the stake. But unlike TOT BP is not investing heavily in Iran, which may cause problems in the Emirates where ADNOC supplies most of the 2.9 mn barrels/day produced there. The sales may be in local markets outside the Gulf and include refining, petrochemicals, pipelines, and storage subs. ADNOC however will remain in state hands, unlike what is happening with Saudi Aramco.

*Delek Group revised its description of its newly acquired Canadian sub, Ithaca Energy, which operates in the UK North Sea from its earlier press release description of the acquisition. The main impact is to increase the possible variations in output from the assets.


*Brazil's inflation having remained low, the CB now is not expected to raise rates, and both Vale and Cosan are up 2.5% yesterday. VALE and CZZ are heavy exporters and borrowers.

CZZ won approval from the Conselho Administrativo de Defesa Economico for buy refineries Santa Catarina and Paraiso.

Vale is benefitting from stronger Chinese demand for iron ore which hit $64.95/tonne in Qingdao

*SoQuiMich of Chile (SQM) is partnering 50:50% with Lithium Americas of Canada in the Exar project in Argentina, down the road from Orocobre of Oz, OROCF. The SQM jv won finance of $172 mn from Gangfeng Lithium of China for eventual produciton of 25,000 tonnes of Li per year. The latest rumor is that Gangfeng wants to buy into SQM as well.

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