Hard landing; and soft test news

          *Beijing Capital International Airport Co. fell sharply today in Hong Kong and I tried to find out more regarding the airport operator at my Chinese lunch with people from over the border in Shenzhen.

    It appears that a rumor was floated by China Times, a newspaper that BJCHF.PK is being stiffed by Chinese airlines which are hurting with high interest rates and (until very recently) high prices for aviation fuel, coupled with lower levels of travel post-Olympics.

    The newspaper said that they owe the lovely Beijing airport 800 mn yuan, a out $117 mn. This was denied by Sec. Shu Yong of the airport, who, while not giving out a figure for how much the airlines owe, said that airlines always delay paying landing and takeoff fees, and the amount owed has not gone up.

    Shu also denied that Beijing Capital was relying on bank loans as  the newspaper reported. In fact there have so far been no bank loans at all but if the airport buys the new terminal from the city, there may well be loans to finance the deal. So far, however, it awaits regulatory approval.

    Despite the denials, the Hong Kong share price of BJCHF fell 17%. It is now more than half off from the 94 cents (US) which we paid. This level seems to over compensate for any likely loss over the next year. The costs of the new terminal, a prestige Olympic project, were scary, but Beijing is not about to close down. So there will still be planes landing and taking off.

     Don't parachute out.

     *Frustratingly, Stallergenes just announced that the FDA has given its approval to new Phase III U.S. adult trials of its Oralaire sublingual allergy desensitizing product against grasses. This is a major piece of news for the French maker of allergenes. The product combines 5 grass allergens in a single oral desensitizing program now being tested.

     What is frustrating is that the French company failed to put out a release in English. It is partnering in the U.S. trials with Quintiles Transnational Corp., a U.S. firm which specializes in overcoming regulatory hurdles, and the approvals came from the Federal Health Administration (FHA) which issued an IND. Both those entities operate in English. Couldn't Stallergenes find an anglophone in Paris to translate the big news? What is the matter with them? They need to get sublingual medications to get their tongues (langues) around English.

     Perhaps because of the francophone lunacy, despite news of the breakthrough to the U.S., the share price of the share fell in the market debacle of Monday by nearly 10% to euro 31.34. (I am using the Paris quote for 006567, not the Euronext-NYSE one).

     In 2009, we will now have 4 clinical trial results for its sublingual desensitizing allergen programs. which will mark a new era for Stallergenes: grasses en Etats-Unis; another long-term trial of grasses in Europe; acarians (dust mites and maybe, this Hallowe'en week, also spiders); and one for birch trees.  

      Stallergenes expects to try to line up a strategic partner here next year to launch these products on the U.S. market. I cannot believe they do not want a partner who speaks English.

       Separately Stallergenes confirmed its earlier expectation levels for growth in 2008 and 2009. In this market!

       Both stocks are buys now if you have cash around.