In the recent past, there has been lot of discussion on where the Chinese economy is headed and on the country’s banking sector health. The Credit-to-GDP gap is a good early indicator of stress in the banking system and it indeed shows that there are big reasons to be concerned about China’s banking system. In particular, when economic growth remains…
Analysis Overview - The yield spread (10-year Treasuries minus three-month Treasuries) is a good indicator of economic slowdown or potential recession and this article discusses recession probability from yield spread perspective. The chart below gives the yield spread from 1959 to February 2016.     It is important to note that in all recent instances of recession, the yield spread…
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 – 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 – 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…
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…
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%.…
Analysis Overview – The per capita disposable personal income growth for the last 15 years in the United States is indicative of the point that there has been potential loss of purchasing power during this period. Disposable Personal Income Adjusted For CPI Inflation – The chart below gives the per capita disposable personal income for the United States for the…
Friday, 18 March 2016 00:00

Can Dynacons Technologies Make It Big?

Unbelievable Returns Don’t be shocked to hear that Dynacons Technologies has returned 5,062% in 24 months. The company was trading at INR0.37 on February 18, 2014 and the stock trades at INR19.1 two years down the line. The returns are stellar, but the story for Dynacons Technologies is still to commence. This article discusses the reason behind the 5,062% returns…
Survey Overview - The Duke University/CFO Global Business Outlook provides some very interesting insights on where the US economy and the corporate sector are headed. In my view, the corporate sector’s view on the economy is always more realistic as compared to the government. The chart below gives some of the key financial metrics outlook derived from the CFO survey…