Bought Alibaba

IaaS – Infrastructure as a Service – is one of three Cloud segments. Over the past 12 years this market grew to $40 billion in the US and is forecast to double to $80 billion or more over the next three years.

In 2018 this segment of the Chinese Cloud produced sales of only $1.2 billion, and near term estimates of growth to $20 billion cannot br too far off the mark given the Chinese interest in adopting and inventing new technology.

At the present time Chinese companies have this market to themselves, because the Great Firewall of China will not allow foreign competition.

With a bit of luck, Alibaba will capture a major slice of this rapidly growing market, just as Amazon did in the US .

Follow up on tobaccos

The BAT share price had been oversold, then rallied to around 2900p. Then came the news that FDA Commissioner Scott Gottlieb was resigning to spend more time with family, and the share price started to extend the rally. Of course we have no idea who the next Commissioner will be, but the betting will be on someone who will carry on with the faster approval programme for generic products because government policy is to make drugs cheaper. With regard to tobacco, my best guess is that this will be put on the back burner – because there are a lot of American farmers and farm workers out there in the hinterlands growing and processing tobacco – so tobacco is a jobs issue. Generic Pharma companies create new jobs, and I think it is possible for the FDA to favour companies with manufacturing facilities in the United States or Canada, as these locations are easier to inspect, and the agency can cite budgetary reasons for not wanting to be inspect any more overseas locations.

I sold my tobacco shares close to all time highs, then bought back in far too early. So it would be nice to see the sector come right again and in the meantime dividend payments have been generous.

Bought Premier Oil

I’ve traded Premier Oil before, and the company has a lot of debt which is gradually being reduced.

So I thought that I would buy a holding prior to the release of figures in early March, as these should confirm progress outlined by the company recently and also confirm how much oil has been sold in the forward markets at highish prices.

The discovery offshore Mexico is also looking promising, as the company has first mover advantage from a political perspective. The Mexican government will realise more money on sale of other drilling rights, and corporate taxation, if the first offshore discovery moves along to production fairly swiftly.

Shares are fairly cheap but of course they could become cheaper !