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Petroleo Brasileiro SA- Petrobras (PBR) has released an update.

Petrobras has announced an extraordinary dividend payout of R$ 20 billion, approximately R$ 1.55 per share, which will be distributed to shareholders in December 2024. This decision aligns with the company’s Shareholder Remuneration Policy, ensuring financial sustainability while rewarding investors. Shareholders of Petrobras can expect their payments by December 23, 2024, for B3-listed shares, while ADR holders will receive theirs starting January 3, 2025.

For further insights into PBR stock, check out TipRanks’ Stock Analysis page.

KeyBanc raised the firm’s price target on Crowdstrike (CRWD) to $395 from $345 and keeps an Overweight rating on the shares. The firm sees a high bar for October security reporters given strong stock performance despite muted Q3 security earnings results thus far, saying its checks have been solid, the analyst tells investors in a research note. Results for Crowdstrike were strong, with several partners noting a bounce back this quarter and no mentions of customer migrations away from them, the firm says.

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Eyenovia (EYEN) announced that Avenue Capital Management has agreed to support a potential restructuring of Eyenovia’s Loan and Security Agreement and has agreed to defer principal and interest payments on its outstanding debt until the end of February 2025. Eyenovia also announced that it is taking additional actions that are intended to reduce the Company’s ongoing personnel-related costs by over 70%. “We are grateful to Avenue Capital for the support they have demonstrated during this challenging time,” stated Michael Rowe, CEO of Eyenovia. “We took immediate steps to restructure our costs and extend our runway to allow us the flexibility to explore a broad range of strategic alternatives.” As previously disclosed, Eyenovia is considering a variety of steps to maximize value to all stakeholders, to reduce expenses and to evaluate its strategic options, which may include a business combination, reverse merger, asset sales or a combination of those alternatives. Further information will be made available once the evaluation of strategic options has been completed.

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Godzilla and King Kong surely weren’t born big. They began small and grew over time to their gargantuan sizes even if the movies don’t tell their childhood stories.

Likewise, huge companies of today were once much smaller (unless perhaps they were spin-offs). Investors who spotted them early had opportunities to make fortunes.

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Can you still find such monsters in the making? Three Motley Fool contributors think so. Here’s why they think biotech stocks CRISPR Therapeutics (NASDAQ: CRSP), Summit Therapeutics (NASDAQ: SMMT), and Viking Therapeutics (NASDAQ: VKTX) could become much larger.

David Jagielski (CRISPR Therapeutics): If you’re looking for stocks with mammoth upside, you might be tempted to look for risky stocks that don’t have any approved drugs or treatments yet. But with CRISPR Therapeutics, you already have a stock that has an approved treatment — it simply isn’t far along in its rollout.

In December 2023, regulators approved Casgevy, which is a gene-editing therapy the company has been developing with Vertex Pharmaceuticals. It was approved as a treatment for sickle cell disease for patients 12 years and older. Then, a month later, it was also approved to treat people with transfusion-dependent beta-thalassemia (for the same age group). Casgevy can be a game changer for patients with these rare blood disorders as it is a one-time functional cure.

CRISPR will share in the profits with Vertex on Casgevy (collecting 40% of them), which could potentially help the company get to profitability. Currently, its operations are well funded with CRISPR reporting more than $1.9 billion in cash and marketable securities as of the end of September. For a business that has burned through $92.7 million in cash over the past nine months, that can provide it with a lot of runway and time to grow its operations and work on other treatments in its pipeline.

At a modest market cap of just $4 billion, there’s a lot of room for CRISPR to get a whole lot more valuable in the future as it scales its operations and Casgevy starts to generate revenue. Buying the healthcare stock now can be a great move for long-term investors.

Keith Speights (Summit Therapeutics): It’s practically unheard of for a company with no product on the market to have a market cap of $14 billion. But Summit Therapeutics is no ordinary company.

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By Aditi Shah, Aditya Kalra

NEW DELHI (Reuters) -A U.S. bribery indictment of Indian billionaire Gautam Adani is linked to one contract of Adani Green Energy that makes up some 10% of its business, and no other firms in the conglomerate are accused of wrongdoing, the group’s CFO said on Saturday.

On Wednesday, Gautam Adani, one of the world’s richest men, and seven others were indicted for fraud by U.S. prosecutors over their alleged roles in a $265 million scheme to bribe Indian officials to secure power-supply deals.

Adani has denied all allegations calling them “baseless”.

Group CFO Jugeshinder Singh sought to defend the allegations on Saturday saying none of Adani’s 11 public companies “are subject to indictment” or “are accused of any wrongdoing in the said legal filing”.

The allegations in the U.S. indictment relates to “one contract of Adani Green, which is roughly 10% of overall business of Adani Green”, Singh said on X.

The U.S. prosecutor charges are the biggest setback for India’s $143 billion Adani Group, which was last year hit by Hindenburg Research’s allegations of improper use of offshore tax havens, claims the company denied.

The U.S. indictment has already had a significant impact on the business.

The group entity’s shares have plummeted, some global banks are considering temporarily halting fresh credit to Adani and Kenya has cancelled two deals with Adani worth over $2.5 billion.

Adani, which has several other global projects, is also charged with misleading U.S. investors about Adani Green’s compliance with antibribery principles and laws.

Singh said on Saturday, they became aware of the “specificity” of the U.S. charges only two days ago.

“We were aware that something is afoot,” he said, adding the company disclosed as much to investors in its $750 million 2024 bond offering, about $175 million of which was raised from financial institutions in the United States.

The U.S indictment, however, says the bond offering “contained false and misleading assurance about, among other things, the Indian Energy Company’s (Adani Green’s) ‘corporate governance’ and touted ‘maintaining transparency and compliance in every aspect’.”

The charges also put the spotlight on Sagar Adani, a director at Adani Green and millennial scion of the company who kept track of hundreds of millions of dollars of alleged bribes to Indian officials on his mobile phone.

Singh said the group would make a more detailed comment once it has legal approval as the matter is before the courts.

(Reporting by Aditi Shah and Aditya Kalra; Editing by William Mallard, Christopher Cushing and Sam Holmes)

Bill Ackman is a billionaire nine times over, according to Forbes. He made his vast wealth by running Pershing Square Capital, the hedge fund he founded 20 years ago. He increased his fame (and made a lot of money) during the financial crisis by betting against bond insurer MBIA and rescuing mall operator General Growth Properties.

Ackman has a concentrated investment style. His fund typically has 10 holdings or less, and when he finds something he likes, he bets big on it. One stock he recently loaded up on is Brookfield (NYSE: BN) — which also happens to be one of my favorite stocks and top holdings. Here’s why I think buying Brookfield was a wise move that will likely make Ackman even more money.

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Ackman has been buying shares of Brookfield hand over fist. His stake in it has multiplied five-fold since June to 22 million shares. That position is currently worth over $1.7 billion, which is about 13% of his hedge fund’s assets, making it the top holding.

Brookfield isn’t a household name among most investors, and the Canadian investment manager’s operation might seem a bit complex at first glance. It has three core businesses:

• Asset management: The company owns a 73% interest in a leading alternative investment manager, and its Brookfield Asset Management business has over $1 trillion in assets under management.

• Wealth solutions: The company provides a variety of insurance products and services, including annuities, personal and commercial property and casualty insurance, and life insurance.

• Operating businesses: Brookfield has operating businesses in renewable power (Brookfield Renewable), infrastructure (Brookfield Infrastructure), business and industrial services (Brookfield Business), and real estate.

In many ways, Brookfield is like a mix between Berkshire Hathaway and Blackstone. Similar to Berkshire, it has insurance operations and invests capital on behalf of investors into operating businesses (and its funds). Meanwhile, it also owns a large stake in a leading alternative asset manager that rivals Blackstone in size and expertise.

Brookfield also has a strong leader, CEO Bruce Flatt, whom many have called the Warren Buffett of Canada. Like Buffett, Flatt is a value investor with a phenomenal track record of allocating capital to grow shareholder value. He’s been with the company since 1990 and has been CEO since 2002. Over the last 20 years, Brookfield has delivered annualized total returns of 16%. That handily beat the S&P 500 and Berkshire Hathaway, both of which delivered annualized returns of about 11% during that period.

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“We want to improve the stability, transparency and predictability in our policies,” Wu said.

That could go a long way towards reassuring global investors, according to CEOs and executives at the Global Financial Leaders’ Investment Summit, hosted by the Hong Kong Monetary Authority. The industry’s flagship event, attended by a full house of 300-odd executives, concluded on Wednesday.

Wu Qing, chairman of the China Securities Regulatory Commission, speaks at the Global Financial Leaders’ Investment Summit on November 19. Photo: Dickson Lee alt=Wu Qing, chairman of the China Securities Regulatory Commission, speaks at the Global Financial Leaders’ Investment Summit on November 19. Photo: Dickson Lee>

“We had a really strong ministerial delegation from China, which is a very strong testament to the importance of Hong Kong globally, and the importance of Hong Kong to mainland China,” Standard Chartered CEO Bill Winters said. “It’s a real pleasure.”

Many global banks and funds will be hoping for Hong Kong to withstand a repeat of Trump’s tantrums from his first term, and prove its sceptics wrong. The president issued an order ending the city’s preferential economic treatment in July 2020 and signed the Hong Kong Autonomy Act, which imposes sanctions on individuals and entities that contribute to the erosion in Hong Kong’s autonomy.

All told, Trump’s trade war resulted in tariffs on US$550 billion worth of Chinese exports and US$185 billion worth of US goods.

“Chinese leaders delivered a strong message of support for Hong Kong at this very tricky time to cope with the challenges ahead,” Tom Chan Pak-lam, honorary president of the Institute of Securities Dealers. “We can expect more measures to help Hong Kong overcome the next round of trade and political fight.”

“A strong ministerial delegation from Beijing is a strong testament to the importance of Hong Kong,” says Winters of Standard Chartered. Photo: Edmond So alt=”A strong ministerial delegation from Beijing is a strong testament to the importance of Hong Kong,” says Winters of Standard Chartered. Photo: Edmond So>

Being in the crossfire of that “seemingly intractable” China-US conflict was one of the three reasons why “it’s over” for Hong Kong, former Morgan Stanley investment banker Stephen Roach said in February. The data suggests the assessment is far from true, as the city continues to burnish its role as a “superconnector” to China’s capital markets.

Since the Stock Connect took off 10 years ago, foreign investors have bought 1.8 trillion yuan (US$249.2 billion) worth of Chinese stocks on a net basis, exchange data showed. Mainland-based funds loaded up HK$3.4 trillion (US$437.2 billion) of those listed in Hong Kong. Foreign ownership of Chinese stocks has risen 20 fold in that period.

“I am expecting to see a lot of a lot of vibrancy here and from many different parts of Asia in coming years,” Citigroup CEO Jane Fraser said. “We are seeing, particularly, the connectivity with Hong Kong as a critical global financial hub.”

Trump’s threats aside, “trade flow will change, but it will not stop,” she said in an interview. “There will be counters to the dampening effect of the tariffs.” Even with extra tariffs, China is just too important a market to be ignored, she added.

“I am expecting to see a lot of a lot of vibrancy here and from many different parts of Asia in coming years,” Citigroup’s Fraser says. Photo: Dickson Lee alt=”I am expecting to see a lot of a lot of vibrancy here and from many different parts of Asia in coming years,” Citigroup’s Fraser says. Photo: Dickson Lee>

BlackRock, the world’s biggest money manager, invested some 8 per cent of its clients’ US$10 trillion assets in the region, according to its 2023 annual report. Hedge fund titan Bridgewater Associates has US$7 billion locked up in Chinese assets, according to co-CIO Bob Prince.

DBS Group, Southeast Asia’s biggest bank, has spent HK$1.4 billion snapping up several floors of prime office space in Central since September.

Moreover, top executives from Bridgewater to DBS Group and HSBC are betting their own money to put down roots in the city. Prince, DBS Bank (Hong Kong) CEO Sebastian Paredes and HSBC Asset Management CEO Nicholas Moreau have ploughed almost HK$200 million into luxury homes on the cheap this year.

“There have been very few bargains and very little value in Hong Kong’s residential market for a long time,” said Chris Gradel, co-founder and CEO of private equity firm PAG. Gradel himself paid HK$550 million in May last year for the 100-year old waterfront home called Villa Ellenbud in Pok Fu Lam.

The entrance to Gradel’s Villa Ellenbud on 50-52 Sassoon Road, Pok Fu Lam. Photo: Google Map alt=The entrance to Gradel’s Villa Ellenbud on 50-52 Sassoon Road, Pok Fu Lam. Photo: Google Map>

Despite the good vibes at this week’s summit, Hong Kong is walking a tightrope. The Hang Seng Index, a benchmark comprising many of China’s biggest enterprises and Trump’s possible targets, has lost all of its post-stimulus bump. This year, more investors are concerned about the city’s political future, a survey by the Private Wealth Management Association and KPMG China showed.

While exchange officials are cheering a revival in initial public offering proceeds this year at US$9.2 billion, it is a far cry from its bumper year in 2020 (US$50 billion) and 2021 (US$42 billion). Beijing will need to do much more, according to Oaktree Capital Management.

“The steps being taken so far are promising, but in many cases they have been described as just a start,” Oaktree’s Marks said.

While China’s stimulus blitz suggested it would not allow its markets to crash, policymakers in Beijing “have a lot more to deliver,” said Karen Karniol-Tambour, the co-CIO at Bridgewater. Ideological differences may be a hindrance, she added in an October 10 podcast.

“They suddenly have a lot of ideological opposition to many different types of stimulus they might need, whether it is all the moral hazard issues that come with handling as tough as a deleveraging as they do, or issues of stimulation where they really feel the kind of stimulation the US did, like giving everyone a check, is ideologically not OK.”

China’s reliance on Hong Kong as a recycler of onshore capital and an offshore fundraising hub has increased, given the shortcomings at home, where consumer confidence has dropped to its lowest level in decades, according to BlackRock. Companies rely on bank loans for almost two-thirds of their financing, and nearly one-third of household savings is socked away in cash for rainy days.

“In my opinion, this is the most important lesson in recent economic history: countries aiming for prosperity don’t just need strong banking systems – they also need strong capital markets,” Chairman and CEO Laurence Fink said in his annual letter to investors. “That lesson is now spreading around the world.”

Despite the misgivings, the Trump years have been rewarding for investors. The MSCI China Index, which tracks 700-odd Chinese stocks traded at home and abroad, returned 98 per cent in US dollar terms during his first presidency. The Hang Seng Index gained 31 per cent, while the CSI 300 gauge surged 74 per cent.

Xavier Musca, CEO of Credit Agricole CIB, said the French lender will not pull back from China markets if there is another trade war. As the second most important economy, China will continue to grow and open to outside investors, he added.

UK lenders HSBC and Standard Chartered are realigning their resources to focus more on affluent individual customers and the wealth-management business. Deutsche Bank, Germany’s market leader, stands to gain from the increasing number of wealthy clients in the city, Asia-Pacific CEO Alexander von Muhlen said.

“The most important underlying demographic supporting our view of the opportunity is that people are becoming wealthier – wealthier in Asia, and wealthier in China,” Winters said. Deutsche Bank is getting strong fund inflows and performance from its clients, von Muhlen added.

HKMA chief executive Eddie Yue Wai-man said Hong Kong is steadfast in its “superconnector” role as the premier gateway for investors looking to enter the mainland Chinese market and vice versa, adding that enhancements to the Connect schemes are in the pipeline.

“Clearly, there’s an enhanced intention of expanding the bond [and] equity connects, and very strong intention from the Chinese regulators to support Hong Kong,” said Sebastian Paredes, CEO of DBS Group’s banking unit in the city. “All that, combined with the very strong stimulus packages that we have seen of late to energise the economy, made us feel very positive about next year.”

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.

Copyright (c) 2024. South China Morning Post Publishers Ltd. All rights reserved.