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IDT votes Yes, Parliament No and more +1


IDTI shareholders have approved the deal with Renesas.  The document also confirms what I've said about the government shutdown delaying CFIUS approval.  Subscribers may also wish to know that a version of my latest Clearway note is likely to appear on Seeking Alpha as an article.

Parliament has also resoundingly voted down May's Brexit plan.  A no-confidence vote is set to take place around 2pm EST, but May is expected to win it.  Assuming that hapens, she will submit a revised plan tomorrow, though really, there seems to be very little wiggle room left.  The question now is whether or not the March 29 Brexit deadline will wind up being delayed.  I would see that as bad, but better than no deal.  My own hope is for another referendum and reversal of Brexit, which now looks incrementally more likely.  I'll update this note in case of surprise on the confidence vote, but not otherwise.

Neither of these two developments should surprise anyone, yet there is still very little clarity.  In America, the only change with the shutdown is that the media is increasingly conscious of the economic toll.  The next in-person trade talks with China are scheduled for the end of the month, and ones with the E.U. should follow soon after.

East of the Atlantic, nobody sees a good way forward on Brexit and the uncertainty seems to be taking some toll on Vodafone, which is following through on the expense and job cutting it promised, but the adjustment won't move the needle for the overall company. 

Finally, Resonant will present at 10am today and issue new guidance in the process.  However the metrics are vague and not enough to move the needle, in my opinion.  The one piece of information that does bear mentioning is that the company expects to sign its first OEM in 2019, which is a big step.  RESN seems to be experiencing some short covering as we head into monthly options expiration, but I'm not sure if that is sustainable while we wait to see how the company will fund its growth.