E Trump Russia Reset Is Redundant

*Agrium is up 6.06% as market resume their love-affair with commodities. It is being merged into Potash of Saskatchewan which mines potash.


*Allianz SE coverage was dropped by Zacks so if you want to learn about AZSEY of Germany you need to read this newsletter.

*Santander opted not to offer UK shareholders a chance to buy into the euros 7.1 bn capital increase for funding Banco Popular  because the legalities were too complicated. Same for ADR owners. Only in euroland and Spain can you buy the new shares.

It also is raising via a private placement of senior unsecured notes in the USA, also not for individual investors. The money may be used to up SAN's stake in Santander Consumer USA, its subprime car loan unit, which managed to pass the Fed's stress test a month ago, from 59% to 68% as co-founder Tom Dundon wants to sell.

*Validus Holdings reported insider acquisition of restricted stock units. The Bermuda reinsurance firm's insiders kept their VR shares which is bullish.


*Eaton Vance Global Dividend Equity Income Fund, EXG, reduced the amount of its payout coming from return of capital in the last quarter, to 89.7% because its earned income rose.

*City of London Investment Group, a fund of closed-end funds, bought 30,000 shares of Morgan Stanley India Fund, IIF, last week, worth $981 mn. The fund is run by Barry Olliff and is marketed to US institutions but not to retail investors. As we exit some of the over-exposed and under-performing Indian ADRs like Infosys and Tata Motors, put some of the money into IIF which specializes in Indian small cap selection. INFY rose 3.1% in India yesterday and TTM 2.3% so if the rise continues we will have cash on hand.

*New Ireland Fund's top holding as of June 30 was CRH plc, the Irish cement and aggregates firm. It lowered its stake in Ryanair over concern about how landing rights will be covered after Brexit given that RYAAY mostly flies Britons to vacation areas in the European Union. RYAAY now accounts for 14.8% of IRL's holdings vs 22.1% for CRH. Paddy Power plc at 7.4% is third; we sold it. Foodmaker Greencore Group at 2.6% is a minor holding but now ahead of Kerry Group, the dairy giant, also under threat from Brexit.

*Bonus stock Global Self Storage Inc is in play as Financial & Investment Mgm Group Ltd has taken an 11.62% stake in SELF. FIM is a 25-yr old US wealth management firm regulated as an investment advisor with the SEC operating across the US, and not associated with SELF, focused on undervalued assets. We got into SELF because it used to be Global Investment Fund, GIFD, a family controlled outfit which had the deepest discounts among global closed-end funds. It changed its mandate to self storage facilities. We sold half when my son the financial analyst said that storage rooms are often abandoned by people who run out of money and are riskier than other REITs.

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