--- the subscriber area has no ads and those above are not selected or endorsed by this site ---


CUI HQ sales and leaseback, Cantor lawsuit and more +2

09:05 26-Dec-18


CUI Global has sold and leased back its headquarters located near Portland, OR resulting in cash proceeds of about $4.5M to the company.  My read of the finances indicates that this should be enough to keep operations running for at least another quarter.  Based on the update given with the annual report, hopefully this will be enough to get the company back to profitability.  However, one might have said similar things two years ago.  No matter what happens, I have to give management a great deal of credit for trying to do the right thing by shareholders.

Also of note is a lawsuit against the former personal assistant to Howard Lutnick, CEO of Cantor Fitzgerald and BGC Partners, who left after 15 weeks on the job.  The suit does not concern BGC Partners directly, but I would be remiss not to mention it.  All I can say is that I regard it as a good sign that Cantor filed suit for return of equipment first, and that Mr. Lutnick seems to know his way around a court room.

Stock futures have been rising all morning and crude oil see seems to have stabilized just above $50 and below $43 for Brent and WTI, respectively.  The narrowing spread is of most interest to me, as is the decline in natural gas, to $3.38.  That could point to a partial reduction in volatility, but the media is still playing a role, with the PotUS saying he thinks recent declines represent a tremendous buying opportunity.  I'm somewhat startled to agree, at least for the long-term with certain selections, but such remarks mean even less to me than those of OPEC and friends.  That said, there are some more meaningfully positive signs, though tensions aren't over just yet.  All I can say for now is that even stocks as different as AES and OLED are down to what I would regard as fair value.  Of course, I prefer to buy and hold those which I regard as being below fair value, and BGCP still tops that list, despite some potential media danger.