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eMagin 1Q21 schedule, plus Google & energy news ?3

09:09 05-May-21


eMagin has scheduled its first quarter report for the morning of May 13th.  On average, analysts are expecting a loss of 5 cents per share from $6.5M in revenue, increasing to $7.7M this quarter.  Xebec will get much more attention from me that morning, but I'll eventually check in on eMagin to see how its improved manufacturing effort is coming along.

The limited slide in GRoDT names like EMAN is one of the reasons that Yellen's tapering comments don't have me too worried just yet, despite the index movement in names like Apple and Google.  Congress is the other reason.  The Epic case against Apple is important to Google as well, since Alphabet is estimated to make almost half of its earnings from its app store.  I think there is a powerful argument to be made to force both companies to open up the software distribution models that they essentially ripped off from Open Source in the first place.

Google also signed a 10-year supply contract with AES to source its Virginia data centers with 90% carbon-free energy.  The deal is characterized as "first of its kind", but such arrangements are what Covanta has done with very limited success and less recognition.  Such scale will always be elusive for it in any case.  Sam Zell's investments back up my comments about Covanta and inflation for the long term.  Per yesterday's Virtu notes, I see BGCP as the best inflation hedge.  Elsewhere in energy it's still all about electrification, small scale RNG for America and transition for the majors like Shell, which should be good for Xebec and Amsc.  In each case, I'm looking at M&A at 5x sales for valuation, which makes the former a steal, and the latter low enough to finally start nibbling.

We also saw PPL Corp. take the step of officially petitioning Rhode Island on its NEC purchase this morning.  We're about halfway to the U.K. closing, though clarity on return of capital is probably further off.  This is a sign that all is proceeding according to plan.