--- the subscriber area has no ads and those above are not selected or endorsed by this site ---
CUI Global service contract and macro thoughts +2
09:32 22-Jul-19
CUI
Global has announced
that it has been awarded a contract valued at over $900K for
servicing the equipment it has installed at 23 sites for a major
U.K. gas company over the next year. CUI shares were initially up
by over a third to $1.10, and have spiked as high as $1.20, but
has hovered around 90 cents for most of pre-market trading.
That's understandable, since the amount is fairly trivial at
about 1% of annual revenue, but the hope is that the U.K. business
will be able to move forward again with a new Prime Minister and
government. The announcement for Boris Johnson or Jeremy Hunt
should be made around noon New York time tomorrow. Johnson is the
overwhelming favorite and he will certainly have leverage against
the E.U. in Brexit talks and plenty of Trump-style media
opportunities with Iran.
Even though any Brexit culmination is better than continued delay,
I think both leaders need to pay more attention to finding
consensus within their own borders, and only see danger
of the Eurozone being dragged further down along with the U.K.
That makes me like Ebix and Golar a bit more, despite the risk,
and stocks like VOD and ABB a bit less, despite the electrification
work the latter is doing. For its part, analyst questions show
that Ebix needs to execute on its EbixCash IPO plans, while Golar
needs to spin-off its shipping business. In the latter case, the
shift
to LNG fueled tankers makes time of the essence.
If Golar is unable to announce concrete plans in the next few
months, I am likely to throw in the towel on both GLNG and GMLP.
For those seeking more safety, Halliburton's earnings
this morning reinforce SLB and its 5% yield as an alternative for
at least the next year so. We'll see what tomorrow earnings
season bring.