Taiwan-based Apple supplier Foxconn is failing to deliver on promises associated with its multibillion-dollar manufacturing facility in Wisconsin – so much so that the state is withholding coveted tax incentives.

The world’s largest electronic provider was promised a $3 billion incentives package, but failed to meet key milestones necessary to receive subsidies, documents first reported by The Verge showed.

The Wisconsin Economic Development Corporation on Monday denied Foxconn’s application for tax subsidies on the basis that it did not hire the promised number of eligible employees and that it was not following through on plans to build a liquid crystal display fabrication facility.

“It is evident from the Recipients’ 2019 Annual Project Report that the recipients are not building a 10.5 Fab, and that current activities are smaller in scale and economic impact to the region and the State of Wisconsin than those projected by the analyses run on the 10.5 Fab when WEDC initially approved and executed the agreement,” the WEDC wrote.


As noted by The Verge, Wisconsin lawmakers have tried to renegotiate the company’s contract for the facility – but have so far been unable to do so.

Wisconsin lawmakers originally put together a $3 billion incentives package to lure the company to the state.

A spokesperson for Foxconn did not return FOX Business’ request for comment.


The deal to build the facility was struck in 2017 by former Republican Gov. Scott Walker, and has been touted by President Trump as a victory for the U.S. manufacturing sector. As part of the deal, state lawmakers negotiated a package including about $3 billion

Source: Barron

Source: Barron’s

Like many cyclical businesses, Schlumberger (NYSE:SLB) has been reeling from the knock-on effects of COVID-19. The pandemic has practically brought business activity to a standstill and created demand destruction for oil. SLB is down over 45% Y/Y; its Q2 revenue fell 28% Q/Q, while EBITDA was off 39%. The company announced a restructuring that would involve laying off about 21,000 employees. In my opinion, some of the company’s problems began with its ill-timed investment in North America.

The Situation

Schlumberger has been known as a well-diversified, international player in the oil services space. Baker Hughes (BKR) and Halliburton (HAL) have traditionally dominated the North America land drilling market. North America land drilling had previously been white hot, putting Halliburton and Baker Hughes in the catbird seat. Schlumberger’s revenue from North America had previously been in the 23% to 25% range pursuant to total revenue.

In early 2017, Schlumberger made a concerted effort to increase its exposure to North America. In Q1 2017, the company announced a joint venture (“JV”) with Weatherford (OTCPK:WFTLF), targeting North America. Both companies were expected to contribute their North America fracturing assets. Weatherford was to receive $535 million in cash and a 30% stake in the JV, while Schlumberger was to own 70%.

In Q2 2018, Schlumberger acquired Weatherford’s pressure pumping assets outright, scrapping the JV. This gave Schlumberger even more exposure to North America. The following chart outlines Schlumberger’s historical revenue by region.

Schlumberger North America revenue. Source: Shock Exchange

In Q2 2016, the company’s revenue from North America was 25%. It ramped up to 30% in Q2 2017; it peaked around 38% in Q2 2018, making North America Schlumberger’s largest region.

Ill-Timed Deal

The timing seemed right for Weatherford. Brent oil was above $65 – more than enough for shale oil plays to make money. The play for

CleanSpark, Inc. (CLSK) claims to provide software as a service, physical controllers, and consultation services to renewable energy infrastructure. This allows the company to have a diverse range of tools and abilities to help a client create a suitable microgrid platform. However, the reality is CLSK’s microgrid business has not gained any traction, and we doubt it ever will.

CLSK was a former OTC traded stock and got uplisted to the Nasdaq on 1/24/20. CLSK has been trading between $2-$3 from early March until early July, which is a fraction of its current price, which closed at $10.40 on 10/7/20. We believe the reason for the rapid rise in share price is due to news flow with buzz words that attract retail investors, primarily regarding microgrids and electric vehicle batteries and charging stations, sectors that have become hot this quarter.

However, its business hasn’t generated significant revenues and its losses have remained substantial. Its technology doesn’t appear to have any advantage over its competition which are established companies like Siemens and GE. After a year of cash burn, we believe that the stock will fade back to $2-$3 where it was trading a few months ago.

What we believe will accelerate CLSK’s downfall, is the expected selling of shares by its largest shareholder, Discover Growth Fund (“Discover”). What we believe most CLSK shareholders don’t realize, is CLSK is in a vicious court battle with Discover which is demanding additional shares at a $1.50 price. The worst case scenario for CLSK, is if it owes Discover hundreds of millions of shares, as stated in CLSK’s appeal filed on 9/18/20. Discovery has a history of selling its entire position of its many previous investments.

CleanSpark Small Revenues And Consistent Losses

CLSK was acquired in 2016 by Statean Energy, which was a clean