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CUI Samson agreement, OMIB and more macro +2

09:37 20-Sep-18


CUI Global has updated its MoU with SAMSON into a formal distribution agreement, as anticipated.  It excludes the U.K. and North America and specifies performance milestone which must be achieved and maintained in order to preserve exclusivity.  There was also yet another purchase of 5K shares by the CEO at $2.3374 on Tuesday.

There are signs of the global natural market taking off, and Russia and China are cited as particular opportunities with SAMSON.  I think there's a good chance that all the recent news could break CUI shares out their funk.  However, the stock remains a race for net income before dilution.  This sets up the next quarterly report in November as supremely important in quintessential GRoDT fashion.

Moving on, I think it's worth following up on yesterday's Fitbit note with news of John Hancock transitioning ALL its life insurance policies to its Vitality program, which gives premium discounts for hitting exercise targets, in 2019.  Customers can choose from a basic program, where they log activity in an app or website, or an expanded one that offers wearable devices and premium discounts of up to 15%.  Although the company cites preliminary data indicating that Vitality policyholders worldwide live 13 to 21 years longer than the rest of the insured population, I think the real hook here is marketing.  Customers receive receive gift cards for major retailers, amongst "other benefits."

A proposal by Cloudfare could be of more fundamental interest to CenturyLink.  On the face of it, the networking protocol is about security, but I can't help noticing that it would also shift control to the edges of the network.  CenturyLink's scale would be fortunate in this regard, but I am still wary.

Similarly, markets look set to rise today on news of Chinese import tax cuts coming in October, right before the midterms, but currencies and treasuries are telling a different story for the long term.  It's not all bad, though, Trump's latest nomination to the Federal Reserve would seem to be a mitigating factor, since Ms. Liang's work indicates that she is quite aware of the dangers:

it is quite plausible that the next recession will be severe for even moderate-sized shocks.
The whole piece is really well worth reading.  It argues that the decades to come will not be like the last few in terms of America's ability to control economics.  To that end, BGC has made two more hires.  Though these seem Brexit and Tullet specifc, this is still a further step toward the globalization of finance that I've been writing about for years.  BGCP is back below $12, and though patience is at a premium right now, I think the stock will be too as we move past 2018.