BT Group Drops On Brexit Vote
BT Group plc (ADR) (NYSE:BT), the holder of British Telecommunications, has been absolutely punished by the market after yesterday’s Brexit vote. Shares of the telecom holding company have retreated 18% on the day as traders factor in the British Pound’s over 8% retreat versus the dollar since yesterday and the increased potential for a British recession. If the pound continues to depreciate against the dollar or if Britain enters a recession, BT Group’s dollar earnings will be lower. At the end of March, 11 funds tracked by us had a bullish position in BT Group plc (ADR) (NYSE:BT) at the end of March.
Solar No Safe Haven
Canadian Solar Inc. (NASDAQ:CSIQ)’s shares are off by 9% in afternoon trading due to the ‘risk-off’ sentiment precipitated by yesterday’s Brexit vote and due to a tornado that damaged the company’s solar cell plant in Funing County, Jiangsu Province, China. Although Canadian Solar expects to recover all of its financial losses through insurance at the moment, the company had anticipated production from the plant to represent 15%-20% of its solar cell requirements for the quarter. Canadian Solar now has to cover its needs by increasing output from its Suzhou solar cell factory, and by buying solar cells from third party suppliers. Although the company expects to maintain annual module shipment guidance, some traders think the additional spending could cause margins to be lower than what many thought previously. The number of funds with holdings in Canadian Solar Inc. (NASDAQ:CSIQ) inched up by one quarter-over-quarter to 17 at the end of March.
NTT Docomo to Potentially Get Billion Dollar Payment
NTT Docomo Inc (ADR) (NYSE:DCM) is in the spotlight today after an international court ordered Tata Sons Ltd to pay NTT DoCoMo $1.2 billion to buy the Japanese firm’s stake in a joint venture. DoCoMo had the right to request Tata to find a purchaser for its stake at either fair market value or 50% of the original price. Tata failed to find an agreeable buyer and India’s government prevented Tata from buying the stake. Given the international court’s decision, it is unclear whether the Indian government will change its mind. Just six funds from our database were long NTT Docomo Inc (ADR) (NYSE:DCM) at the end of March, up by three funds from the previous quarter.