There are several sub-sectors within the broad energy sector that have been impacted due to the crash in oil prices. Among the worst hit is the offshore drilling sector where companies had leveraged significantly during good times. This article discusses the order backlog (2016) for key offshore drilling companies, the EBITDA outlook for 2016 and the leverage outlook. The objective…
The offshore drilling sector has been hit hard due to steep decline in oil prices and several companies have witnessed deep carnage. Just as an example, Seadrill (NYSE:SDRL) has crashed by 86% in the last one year. While 2016 is likely to be another challenging year for the offshore drilling industry, there are quality names in the industry that can…
Thursday, 18 February 2016 00:00

Credit Metrics Analysis For AerCap Holdings

On February 14, 2016, I had provided a basic credit metric analysis for Air Lease (NYSE: AL), a company operating in the aircraft leasing industry. This article looks the credit metrics for another company (largest by market capitalization) in the aircraft leasing industry. AerCap Holdings (NYSE: AER) had 1,124 owned aircraft as of September 30, 2015 with an average aircraft…
Tuesday, 16 February 2016 00:00

Why Central Banks Will Continue To Buy Gold?

I had earlier written an article with the data on central banks accelerating gold purchase in the second half of 2015. This article will discuss the key reason why central banks of China, Russia and India will continue to buy gold in the coming years. I am focusing on China and Russia in particular as these two countries have been…
Monday, 15 February 2016 00:00

China In Renewed Economic Downturn

China has been in news for not so good reasons from an economic and financial markets perspective. While China’s real economic activity continues to remain sluggish, the country’s equities have slumped by 17% for YTD16 and by 31% in the last six months. A meaningful slowdown or recession in China is likely to have a significant impact on the global…
Air Lease (NYSE:AL) is in the business of aircraft leasing and the stock has slumped by 27.4% for YTD16. In my view, this correction is a good opportunity to consider long-term exposure to the stock and this article discusses the company from a credit perspective.     A discussion from credit perspective is important as aircraft leasing stocks have high…
Saturday, 13 February 2016 00:00

Central Banks Continue To Buy Gold

Gold has been on an uptrend in 2016 and there are several reasons to be bullish on gold for the near-term and for the long-term. One of the factors that will drive gold prices higher is the demand for gold coming from central banks globally. The World Gold Council released the “Gold Demand Trends for 2015” and it provides insights…
I had initiated Raunaq EPC International on January 27, 2016 with a view that the stock is worth accumulating. The stock has been marginally higher since then even after the broad market carnage and I remain bullish on the company’s long-term prospects. This article discusses the company’s 3Q16 results that were released on February 4, 2016. Overall, the results can…
Thursday, 11 February 2016 00:00

Mallcom (India) 3Q16 Result Review

I had initiated coverage on Mallcom (India) on January 2, 2016 with a buy recommendation for long-term. There has been deep carnage in global markets for YTD16 and the NIFTY index has declined by nearly 11% for the year. Mallcom (India) has not been spared with the stock correcting by 23% since recommendation. However, I remain bullish on the stock…
Sunday, 31 January 2016 00:00

Economic Growth Trending Lower

There is little doubt that global economic growth has been weak in the recent past. The chart below that gives the “Global Purchasing Managers Index” confirms my point on weak economic growth. I wanted to highlight this chart as the recent meltdown in equities has strong fundamental factors driving the downside.     It is clear from the chart above…