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more MVIS dilution, STI and Covanta pre-earnings notes -2

18:49 23-Apr-19


MicroVision has sold another 2.25M shares for just under 89 cents each, but MVIS remains stubbornly near the $1 mark.  Maybe a rescue is around the corner, and this deal is only another 2% dilution, but anyone who is inclined to disregard the danger should reread #2 at the end of this note on STI, which finally has its first customer after over four years of its own product development.  Still no word on yields or order quantities, though, which leaves me hands-off for both stocks.  If I was going to take a GRoDT risk, it would probably be on WPRT or CUI.  Europe's approval of vehicle emission standards was expected, and thus neither stock has moved.  Nonetheless, this is an important step forward.

I remain more focused on value yield, like Vodafone despite bad press, though.  CVA pricing has moderated slightly, but not enough to interest me even though I expect a mild beat thanks mostly to and with HMS (Heavy Melting Steel) at $314/ton and escalation of other metal prices.  The company also just extended what should be the last of its maturing U.S. contracts for a while through 2035.  The spot market for waste disposal should be another continued tailwind, but I will be more interested in international color.  AES is selling off its assets in the U.K. and Jordan and its stock is also showing only slight moderation of the safety premium that I'd long predicted.