Links 8 July 2018

Global Macro / Markets / Investing:






      • That is still internal combustion
        Electric cars have a sealed powertrain.
        Warranted for life
        we once had a premier, dont u worry about that, who was all into hydrogen, about 30 years ago
        in europe buses run on hydrogen, it is dissolved in aluminium for safe vehicular storage.
        Unfortunately, this is going nowhere.

      • JohnR, his posts are contradictory.

        He says “because people can earn more from owning property. This leads to underinvestment in R&D and automation. We are below average in industrial robots per head”

        If Britain stopped importing 3rd world passport holders, British bosses would be forced to use robots – just like Japanese bosses.

        “We have declining productivity compared to the rest of the G7”

        If Australia doubles its population, would it double LNG exports? Nope. To boot, oil imports would go up to power all the extra flights.

  1. St JacquesMEMBER

    Talking about things going nowhere, there’s this Australian biotech I’ve got a punt on and is being ignored by the market in a manner that seems to make no sense.
    This Aussie wonder biotech is called PharmAust or PAA whose HQ is in Perth.. It has two divisions, a small but growing international business that manufactures specialist medicinal and lab molucules called Epichem which also does some drug research, but the real excitement is its drug development arm icalled Pitney which is developing an antii-cancer drug called MPL or monepantel. What is exciting about this drug, whose anti-cancer properties were discovered by Professor Morris of the University of NSW who works as an oncologist and cancer researcher at St George Hospital in Sydney, is that it works on late stage tumours that are resistent to existing treatments. MPL is also low toxic drug and is already in use in farm animals but as a parasite killer or “drench” that is delivered orally to the animals under the name Zolvix manufactured by US company Elanco, a division of pharma giant Eli Lilly. PAA has been working on MPL as an anti-cancer drug for dogs and humans since the discovery in 2013. They completed the phase 1 clinical trials on dogs and humans in late 2015, and over a year ago and about a year and half ago they did a two week preliminary phase 2 trial on 7 dogs of which 6 returned excellent results. So why isn’t everybody talking about PAA?

    Well, since 2015 PAA’s share price has been in a long term down trend and its not hard to know why. PAA have been struggling to make MPL palatable for 3 years This is much harder than it sounds and apparently this can stop drugs, because it means also making the drug “palatable” to the stomach itself. So it’s not something that can be dealt with by simply putting the drug in a capsule. In fact the drug was reformulated and put in a capsule, but the results were not satisfactory, this is because much more is needed for the treatment of cancer than is needed as a drench for parasites in farm animals. Anyway on the 28th of May PAA announced that the had finally found the Holy Grail in the form.of a reformulated tablet and that they will be preparing for the phase 2 clinical dog and human trials and on top of the global company Elanco is becoming involved. But instead of going up, PAA’s price has dived in the two months since.the announcement from to an all time low of 3.5 cents yesterday and the news media is silent on PAA. WTF is going on?

    • As anybody with a cursory knowledge of the sharemarket knows, Western Australia is the well-spring of discovery and invention.

      There are more companies invented in Perth and listed on the Australian Securities Exchange than in any other state. We are not merely talking about mineral exploration either, but also of scientific endeavour.

      Perth is indubitably the epicentre of the biotechnology world, as its sheer number of listed biotech stocks attests.

      One even advised the ASX a few years ago that it had discovered a cure for … wait for it … pain.
      It is surely just a matter of time before some intrepid pioneers from Leederville or Nedlands discover a pill for eternal life – after a long lunch on St Georges Terrace.

      The ASX would give the story a good run, and facilitate a backdoor-listing into a mining shell after a brief stint with some friendly insolvency practitioners.
      (from Michael West)

      • St JacquesMEMBER

        The PItney division of PAA is located in Sydney. PAA is a merger effectively of the Epichem molocule order business based in Perth and Pitney in Sydney back in 2013. Epichem itself does medical research work for DNDi – an organisation that researches neglected tropical diseases. The MPL cancer discovery was made in Sydney at the University of NSW by Professor David Morris, a leading oncologist and cancer researcher based at St George Hospital in Sydney..Professor Morris and associates have published scientific papers on this, which should allow others to replicate the results. The lab studies have recently been independently confirmed by the Olivia Newton-John research institution in Melbourne. Farm animal pharma giant Elanco is becoming involved and has an option. I could go on. I think this group is terrible at self promotion and the media is almost silent on it. DYR

      • How much of a punt do you have on.??
        If the company was any good, it would have been listed in sydney, the biggest financial hub in the southern hemisphere,
        not perth, the renowned home of ali baba and co.
        The majority of the time you are judged by the company you keep!

      • St JacquesMEMBER

        Enough to scald. If it is an elaborate con, then it’s a beauty, and I am aware of PAA’s failed pre-merger pain killer project. I suppose if it is a con, then their palatabilty issues ie making the stuff acceptable to the stomach could be a great way to string out investors, but this issue apparently is a very big issue in cancer drug development and is common. btw, as far as I know, the MPL anti-cancer technology is actually owned by the University of NSW, PAA has taken out patents in major markets pending its development. edit: anybody considering this company should do their own research, veryt carefully.

  2. TheRedEconomistMEMBER

    Just a copy of a post from yesterday’s Macro Afternoon link.

    See attached for plan for quasi land tax in NSW.

    Pay stamp duty over 15-20 years.

    All this will do is just pump prices back up a bit as punters won’t have to factor in the stamp duty coming from their deposit.

    It will be interesting how the banks will assess this future liability when assessing the borrowers ability to repay their loan.

    • If land tax is forever and stamp duty is a 1 off. I’d pay stamp duty… But typical of them to desperately make a change once revenues fall.. self serving grubs.

      • The Traveling Wilbur

        Really? That’s really your best work?

        Déjà vu.

        Not that hard. Really.

        Said your missus.

        On my night off.

        Just gettin’ them all in there for you.

        I’ll let you take that one.

        Said your missus.

        How did footsore put it in one of his crustier moments? “And so on and so on and so on…”

    • The Traveling Wilbur

      Translation: no one asked anything about what we were *really* worried about. Bullets and jail dodged.

  3. TheRedEconomistMEMBER

    Transcript: Matt Comyn video interview below

    Matt COMYN: It has been a difficult 12 months, and I wanted to start by thanking all of our people right throughout the
    business who have worked incredibly hard in challenging circumstances to deliver a result of $9.2 billion, which at a
    headline level is down 4.8%, although there has been a number of one-off items that have impacted the result, including
    a couple of large penalties that we have resolved. If you strip some of those out, actually the result looks more from an
    underlying perspective up 3.7%. I think given the context of what we have had to operate in, it really does show the
    resilience of our core franchise. And it is a combination of both that, as well as our outlook on our capital position, which
    has enabled us to declare a full final year dividend of $4.31, up two cents.

    Full result presentation below

  4. NEW ZEALAND: ANZ to become first bank in NZ to stop incentivising frontline retail staff with sales targets, acknowledging the ‘environment is clearly changing’ |

    ANZ is to become the first bank in New Zealand to remove all sales incentives for its frontline retail sales staff.

    The 25% slice of frontline staffs’ “scorecards” attributed to sales, will be done away with on October 1.

    ANZ’s managing director of retail and business, Antonia Watson, says retail staff will still be incentivised around good customer service and other aspects of banking such as product knowledge but there will be no sales component.

    Than bank’s move follows a change in the composition of these scorecards last year. … read more via hyperlink above …

    • its happening right here on the gc
      many punters bought up with the intention of selling into the games
      then the games was a failure,
      now the speculation is like the albatross.
      all the punters who relied on their cunning as their public image are now being brought back to earth or for here to underwater.
      and it is very widespread.