Seadrill Limited (NYSE:SDRL) provides offshore drilling services to the oil and gas industry worldwide. The stock is currently trading at $36.96 and offers an attractive dividend yield of 10%. An important question for equity shareholders is on the sustainability of the dividend. This article investigates Seadrill primarily from a credit perspective to conclude on the growth, cash flow and hence…
A good indicator of real economic activity is the money velocity. The money velocity in the United States is currently at a 60-year low as evident from the chart. The important question therefore arises – Can expansionary monetary policies help real economic activity?     The second chart, which gives the excess reserves of depository institutions with the Fed, can…
Sunday, 02 March 2014 00:00

The Real Unemployment Scenario in US

While the policymakers at the Fed are basking in glory that expansionary monetary policies are working, the ground reality is different. The headline unemployment rate does show a rosy picture with the unemployment rate at 6.6%, down from a peak of 10% in October 2009. However, the U6 rate still remains relatively high at 12.7%. Most importantly, this article will…
We had initiated on Treehouse Education and Accessories with a target price of INR370. Certain investors have raised the query that a low promoter holding is a cause of concern. We therefore decided to elaborate on the shareholding pattern. The conclusion first – A relatively low promoter shareholding is not a matter of concern. We wish to remind our readers…
Disruptive Investor believes that Treehouse Education and Accessories is a potential long-term value creator. This article will discuss the reasons why we believe that our first stock pick is bound to be an outperformer. Treehouse Education is in the business of pre-schools and is India’s largest self-operated pre-school chain. At a current market price of INR240, Treehouse Education is trading…
Sunday, 12 January 2014 00:00

Disruptive Investor On Global Equities

Disruptive Investor intends to bring forward attractive investment opportunities from global markets in this section of the website. This section is intended for Indian investors as well as global investors looking for long-term value creators. Within the equity portfolio, it has become increasingly important to diversify on a global basis. Certain markets and regions tend to outperform others at different…
Friday, 10 January 2014 00:00

Disruptive Investor On The Global Economy

At Disruptive Investor, we intend to provide intelligent insights on the global economy. We believe that market participants derive minimal benefit from just looking at government published headline numbers related to inflation, unemployment and so on and so forth. A deeper analysis of data is needed to bring out the real picture of the economy or the job market. This…
Friday, 03 January 2014 00:00

Disruptive Investor On Indian Equities

The Indian equity markets are still at an early stage of growth in terms of retail participation. There is no second thought on the point that the Indian markets are largely driven by FII investing. At Disruptive Investor, we believe that things are bound to change in the long-term and retail participation will be significant as the markets develop further…