Analysis Overview – Since Mr. Narendra Modi assumed power, the NIFTY Infrastructure index has declined by 16% and Larsen and Tubro has declined by 17%. The index and the stock indicate that infrastructure sector investment has been sluggish. The chart below gives the returns for the infrastructure index, L&T and NIFTY since May 2014. Clearly, the infrastructure sector has significantly…
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…
In several of my recent articles, I have discussed the various factors to be bullish on gold not just in the near-term, but for the next decade. The currency factor dominates the factors to be bullish on gold with all currencies likely to depreciate against hard assets in the coming years. With gold likely to trend higher in the long-term,…
Investment Summary – Chembond Chemicals, listed in BSE with a current stock price of INR359 and market capitalization of INR240 Crore is a multi-bagger in the making. Chembond Chemicals is involved in the manufacturing a diverse range of specialty chemicals like water treatment, polymers, construction chemicals, high performance coatings, animal nutrition’s and industrial biotech products. In my view, the company…
An Ideal Scenario - When free markets and free economy is allowed to work, there are bound to be excesses in some sector of the economy and that usually translates into a self correction recessionary phase. The period of recession is certainly painful, but allows the system to cleanse off the excesses. When economic growth trends higher again, the growth…
In one of my recent articles, I had discussed on the biggest foreign holders of US Treasury securities. This article discusses the biggest holders of Treasury securities (within US and foreign) and the implications of the trend. The chart below gives the top seven holders of US Treasury securities as of December 2015.   The following points are worth noting…
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…
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…
Analysis Summary – Pioneer Natural Resources (NYSE: PXD) is fully financed for 2016 and 2017 and the company is likely to maintain investment grade rating through this period. Pioneer Natural Resources is the best stock for investors considering exposure to the Permian Basin and this article discusses the company’s liquidity position for 2016 and 2017 and its implications on the…