Gunmen kill 5 including police colonel in Yemen’s Aden



Aden // Gunmen killed a police officer and four others in Yemen’s Aden in a wave of attacks targeting security forces in the country’s temporary capital.

The attackers on Sunday opened fire on a police vehicle carrying Colonel Taha Al Sobeihi in Aden’s Mansura district, killing him along with a bodyguard and a female bystander, a security official said.

Al Qaeda and the rival ISIL group both have a presence in the city, where militantsts occupy government buildings and are seen patrolling several districts and intimidating civilians.

They have claimed a string of attacks and assassinations in recent months.

Late on Saturday, unidentified gunmen killed a soldier in Mansura, a security official said.

The man was a recruit in a new force that is loyal to President Abdrabu Mansur Hadi and trained by the Saudi-led coalition, which in March launched a military campaign against rebels who had overrun large swathes of the country.

Mr Hadi last year named Aden as his government’s temporary capital after Iran-backed rebels stormed the capital Sanaa in September 2014.

Extremists in the city have distributed pamphlets in mosques, warning men against enrolling in the new force against Houthi insurgents, claiming it would “bring back tyranny”, residents said.

Another man was shot dead on Saturday when gunmen attempted to kidnap him along with his father in Aden’s Crater district, a security official said. The two belonged to the Shiite Bohra minority.

Four members of that community have been kidnapped by extremists in the past days in Aden, three of whom have already been released, the official said.

Meanwhile, suspected Al Qaeda militants blew up a vacant police station in Huta, the main city in Lahj province, which is controlled by loyalists.

Hadi returned to Aden after loyalists backed by coalition forces pushed the rebels and their allies out of the city and four other southern provinces in the summer.

The president sought refuge in Aden from the rebel-held capital last February, but a Houthi advance on the south in March forced him to flee to Riyadh.

*Agence France-Presse

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How Tesla’s price correction has hit fund managers

Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.

It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.

The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.

Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.

Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.

He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.

AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”

A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.

Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.

Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.

Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.

By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.

Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.

In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”

Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.

She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.

Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.

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