The Eagle Ford Shale is a gas and oil producing shale formation in south Texas. It extends to northeast Texas and touches the Mexican border. In this series, we’ll look at drilling activity in the region.
MLP funds underperformed SPY In this article, we’ll analyze the performance of MLP-focused funds in February 2017. They have underperformed the SPDR S&P 500 ETF (SPY)(SPX-INDEX) since the beginning of…
Highest spending on share buybacks So far in this series, we’ve discussed IBM’s (IBM) acquisitions and its focus on the cybersecurity space. Following the trend in the technology sector, IBM is…
Emerging market debt can be a great source of income potential in a diversified portfolio, provided you can manage it during a period of extreme volatility.
The VanEck Vectors EM Local Currency Bond ETF (EMLC) could be a good entry point after it took a hit following rising interest rates and volatility in the US dollar.
You have two options when it comes to investing in emerging market bonds—hard currency bonds and local bonds.
Strong investor interest in emerging market debt has continued despite adverse political and economic issues in some countries.
According to a recent BofA Merrill Lynch Global Investment strategy report, emerging markets are expected to grow at a modest pace of 4.7% in 2017.
Negative bond yields in Japan and low Fed funds rates in the United States and the Eurozone were one reason emerging market bonds performed well in 2016.
Since the US presidential election, emerging markets have bounced back as though the election never happened.
The US GDP growth outlook is near its potential at ~3%, with increased investment in infrastructure.
The Permian Basin, which spans parts of West Texas and New Mexico, is considered one of the most prolific regions for oil and gas production in the US.
If you’ve invested in agricultural fertilizer companies, you’ve failed to beat the S&P 500 (SPY), which had a CAGR of 10.3% over the past seven years.
Perhaps the most important metric that matters most to investors is returns. With the focus on common equity investors, we’ve used ROE to measure return.
Borrowing can lead to interest costs that a company must be able to cover from ongoing operations. A ratio of 1.0x means it will take one year to pay off a company’s debt.
Let’s look at EBITDA margins for a ten-year period, which encapsulates one full agricultural business cycle that can last one to eight years.
Cost of production can impact the realized prices of fertilizers and, in turn, impact the profitabilities and valuations of fertilizer companies.
Potash salts are the key cost of production for potash, so most producers have an integrated production.
Energy as well as freight and handling can be the two biggest costs for nitrogen fertilizer production.
Since phosphate rock is one of the major costs of production, companies such as Mosaic (MOS) have an integrated production process.