Andrew Corn's  Instablog

I had once blogged about Apple needing to be careful about having too many stores. The exclusive issue is always at stake with an upscale brand. That notice is now quaint as one can but an iPad at Walmart or a wireless store of AT&T and soon Verizon.

I read with great interest just a few minutes ago in the Atlantic that Apple Stores bring in more foot traffic than even Disney Parks.

The bar chart says it all

tinyurl.com/26wtoza


Disclosure: Long AAPL

With the end of summer rapidly approaching, I am happy to be posting again. I am now comfortably in place at my new Firm E5A Funds LLC and am once again, though the use of (new) multifactor models and fundamental research, on the prowl to uncover investment opportunities, long and short for the benefit of our investors.

Today the news was grand for our long position in Cosan Ltd. (NYSE: CZZ). The firm is in the sugar and ethanol business. The firm is based in Brazil and sells domestically and internationally. Today’s stock price moving news is an upgrade and binding of its joint venture with Royal Dutch Shell PLC (NYSE: RDS-A). Retuers reported the signing of a binding agreement.

Royal Dutch Shell Plc (RDSa.L) and Brazilian sugar and ethanol giant Cosan signed on Wednesday a binding agreement to create a global ethanol business, looking to benefit from growing demand for biofuels.

The joint venture, with estimated annual sales of $21 billion, was modified since its initial announcement in February to include all of Cosan’s energy generation business and 500 million reais ($283.6 million) in debt owed to Brazilian development bank BNDES.

Cosan (CSAN3.SA), the world’s largest sugar and ethanol producer, also said in a securities filing that the initial accord was changed to make the venture a global biofuels provider. As a result of that, Cosan and Shell are barred from competing with the new entity.

One of the more significant pieces is the agreement for both companies not to compete with the JV. RDS which has vast global holdings, this should be of real benefit to CZZ.

With the controversy surrounding renewable energy that can also be eaten, adding sugar to the mix is sweet. The truth is that the bulk of corn is grown for feedstock and is not well suited to human consumption.

Disclosure: Mr. Corn is Chief Investment Officer of E5A Funds LLC. Through various equity strategies under his supervision he is currently long Cosan Ltd. (NYSE: CZZ) and Teucrium Corn Fund(NYSEArca: CORN).

Disclosure: Long CZZ and CORN

www.business-standard.com/india/news/exports-to-china75/392877/

The article link is above. The absolute numbers are still relatively small and should be watched by industry closely for investment opportunities.

Disclosure: No positions