Guest Article From Frank Holmes, CEO Of U.S. Global Investors   Last week I shared with you the Commerce Departments’ news that fourth-quarter corporate profits, while still at record highs, sank at their fastest pace since the same period in 2008. As I said then, that’s no reason to panic. You might have read elsewhere that close to…
Analysis Overview – In the recent past, I have discussed several energy stocks from a liquidity and balance sheet perspective with Occidental Petroleum being the most discussion. The aim is to select stocks that can navigate the crisis with ease and maintain healthy credit metrics. Hess Corporation (NYSE: HESS) is another stock in the exploration sector that has robust liquidity…
Analysis Overview – Amidst volatility, the S&P 500 index has largely been range bound in the last 24 months with the index returning 9.5% during this period. This article discusses historical and forward valuations for S&P 500 to conclude on the potential direction for the index in the next 12 months. S&P 500 PE Valuations (1988 to 2017E) – The…
Analysis Overview – Apple (NYSE: AAPL) is unlikely to grow sales or earnings at a scorching pace in the coming years, but the stock is worth considering for value creation through dividends and buybacks. Apple On Buyback Spree – Apple has bought back shares worth $35 billion in LTM and $103 billion in the last five years. This is the…
As the S&P 500 earnings momentum wanes, it’s the buybacks that are key earnings growth catalysts. As of September 2015 quarter, buybacks as a percentage of operating earnings was 67.2% with $150.6 billion in buybacks as compared to operating earnings of $224.2 million for the quarter. Further, for the quarter ended September 2015, the buyback and dividend yield was 5.53%.…
In the last five-years, the US corporate sector has gone aggressive in terms of share buybacks with $2.3 trillion worth buybacks during this period. The chart below shows the sectors that have contributed the most to the buyback spree in these five years.   In terms of buyback yield (LTM ended September 2015), the industrials sector has a yield of…
Analysis Overview – Even with $35 per barrel oil assumption for 2016, Occidental Petroleum (NYSE: OXY) is positioned to pay dividends, reduce debt and maintain a healthy year end 2016 liquidity profile. The largest player in the Permian Basin is attractive for long-term and is likely to maintain S&P credit rating of “A” over the next 12-24 months. Why Liquidity…
Analysis Overview - Freeport-McMoRan (NYSE: FCX) has surged by 167% in the last two months and the rally can sustain if the company is successful in its deleveraging initiative through sale of assets. This article analyzes the potential cash inflow and outflow for the next 24 months to conclude that there are reasons to remain bullish on Freeport-McMoRan. The chart…
Analysis Summary - Marathon Oil (NYSE: MRO) is fully funded for 2016 and 2017 capital expenditure and the company’s credit health is unlikely to worsen in the next 12-24 months. No significant debt maturity in near-term is added positive. The chart below gives the company’s liquidity analysis for 2016 with potential sources of cash inflow and outflow. With the recent…
Friday, 11 March 2016 00:00

Where Is Chipotle Mexican Grill Headed?

Analysis Overview – Chipotle Mexican Grill (NYSE: CMG) has witnessed challenging times in the recent past on E-Coli related illness in restaurants. The stock has corrected by 33% from peak levels, but valuations still remain expensive. Word Of Praise For Management – Since the E-Coli the management has done exceedingly well towards restoring consumer confidence. From review of the entire…
Page 2 of 5