What Are Freeport’s Near-Term Growth Drivers?
Freeport expects its copper shipments to fall next year due to asset sales. The falling trend in its copper shipments could continue beyond 2017.
Index & Mutual Funds
Track the hottest index funds and check in on the performance of mutal funds with Market Realist's financial analysts.
Richard Bernstein: Don’t Fear the Bear Market
A legitimate bull market In this series, we’ve taken a look at Richard Bernstein’s views on investors’ fear of an impending bear market. In Richard Bernstein Advisors’ October Insights newsletter, he rejects the notion that the current rise in US stocks (SPLV) (OEF) has been brought about only by the Fed’s easy monetary policy. In the […]
Can Investors Expect Momentum from Altria’s 3Q16 Earnings?
In 2016, Altria’s share price has risen 7.8% YTD. During the same period, peers Philip Morris and Reynolds American have risen 9.9% and 4.4%, respectively.
IMF Warns about 3 Risks to the Global Financial System
The International Monetary Fund (or IMF) warned that there are three major risks to the global financial system in its latest report on global financial stability.
Alcoa’s 3Q16 Guidance: Everything You Need to Know
Alcoa’s 3Q16 guidance Previously, we looked at factors that could impact Alcoa’s (AA) 3Q16 revenues. In this part, we’ll look at the company’s profitability metrics. Note that there are several metrics you can use to measure an enterprise’s profitability. Alcoa releases a non-GAAP (generally accepted accounting principles) measure, the ATOI (after tax operating income). In […]
Nasdaq Commodity Index: Reflecting the Global Commodity Market
On the commodities side, we have broad-based commodity benchmark, the Nasdaq Commodity Index, aptly named.
A Look at Teva’s Dominance in the Biosimilar Space
As one of the early entrants in biosimilars, Teva Pharmaceutical Industries (TEVA) has managed to become one of the biggest players in the biosimilar space.
What’s Driving Aluminum Prices in 2016?
Aluminum prices have shown resilience this year. However, aluminum has been facing stiff resistance at $1,700 per metric ton.
How Do Chinese Copper Demand Indicators Look This Month?
It’s important for investors in companies such as Freeport-McMoRan, BHP Billiton, and Rio Tinto to track Chinese copper demand indicators.
The REIT Advantage: High Returns, Low Correlation
Not only do REITs tend to provide steady and stable returns over the long term, but they also help in diversifying investor portfolios effectively.
The Evolution of REITs
The REITs (IYR) sector has shown phenomenal growth over the years. In the past five decades, REITs have grown to a market cap of nearly $1 trillion.
Why Is Sanofi Expanding in the CHC Space?
Sanofi (SNY) plans to become a leading company in the CHC business. The asset swap will exclude Boehringer Ingelheim’s CHC business in China.
Morgan Stanley, Citibank Doubt Longevity of Iron Ore Price Rally
Morgan Stanley is bearish on the future prospects of iron ore prices. The broker estimates that the iron ore prices will fall to $40 per ton in 2H16 and $35 per ton in 4Q16.
What Are the Threats for Emerging Markets?
The major threat to emerging markets is tightening in the US. While the Fed will likely leave rates unchanged in September, a hike is possible in December.
Fading Risks Are Working in Favor of Emerging Markets
Low commodity (GSG) prices in the first quarter of the year impacted commodity-driven emerging markets like Russia, Brazil (EWZ), Indonesia, and Venezuela.
What’s Been Driving Cliffs Natural Resources’ Valuation
Valuations Valuation multiples are key metrics that investors consider carefully. With the help of relative valuations, we can compare a company’s valuation with its closest peers’ valuations. There are several valuation metrics that we can use. For companies in cyclical industries such as steel and mining, the EV/EBITDA (enterprise value to earnings before interest, taxes, depreciation, and amortization) […]
What Analysts Have to Say about Iron Ore Prices
Analysts have increased their short-term iron ore price forecasts due to stronger-than-expected temporary factors.
Can 2Q16 Mark a Turnaround for Freeport-McMoRan’s Revenues?
Analysts expect Freeport-McMoRan (FCX) to post revenues of ~$3.7 billion in 2Q16 and $4.4 billion in 3Q16.
How Did Domtar Perform in 2Q16?
Domtar (UFS) has a market cap of $2.5 billion. It rose by 11.9% to close at $39.53 per share on July 27, 2016.
Century Aluminum Misses 2Q16 Revenues: Should You Be Concerned?
Century Aluminum reported revenues of $326 million in 2Q16. The revenue miss shouldn’t be a major concern given its performance on other metrics.
How Much Did Kellogg Return to Shareholders?
Kellogg announced a quarterly dividend of $0.50 per share on its common stock—paid on June 15 to shareowners of record at the close of business on June 1.
Are ArcelorMittal’s 2Q16 Earnings Estimates a Little Aggressive?
ArcelorMittal (MT) posted adjusted EBITDA of $927 million in 1Q16 and ~$1.4 million in 2Q15.
Bunge Consistently Returns Value to Shareholders
On May 24, Bunge announced that its board of directors approved a 10.5% increase in the company’s regular quarterly common share cash dividend.
In Retrospect: How the 2008 Crisis Affected SPY’s Valuation
When the 2008 credit crisis affected the S&P 500 Index (SPY), we saw a large shift in valuations and the index level.
How Fallen Angels Could Reward Investors
Fallen angel bonds—high-yield bonds originally issued with investment grade credit ratings—are generally known for offering potential value. A big source of this value has been the tendency of fallen angels to be oversold below what may be considered fair value, leading to a downgrade to high yield. A less obvious source of value for fallen angels […]
Can Higher Commodity Prices Boost Alcoa’s 3Q16 Earnings?
Alcoa expects its fiscal 2016 net income to rise by $160 million for every $100 per metric ton rise in aluminum prices.
ALNY Should Complete Revusiran’s Endeavour Trial Enrollment in Late 2016
If the Endeavour study results in positive data, Alnylam Pharmaceuticals may become a major rare disease player like its peers United Therapeutics (UTHR) and Vertex Pharmaceuticals.
Alcoa’s 2Q16 Earnings: Everything You Need to Know
Alcoa (AA) reported its 2Q16 earnings yesterday after the market closed. Here’s what you should know.
Latin American Markets Rise as Inflation Levels Ease in Brazil
Latin American markets were trading higher on July 9—taking cues from other emerging markets. Brazil’s inflation rate was released lower at 8.8% in June.
How Can Latin America Keep Up Inclusive Growth?
The Latin American (ILF) (EWW) economy contracted in the second half of 2015. The fourth quarter registered the biggest fall in six years.
Is Cliffs’s Valuation Justified?
Cliffs Natural Resources (CLF) is trading at a forward EV/EBITDA multiple of 11.0x compared with its last five-year average of 8.0x.
Why Did Toyota Motor Recall Its Vehicles?
Toyota Motor (TM) has a market cap of $158.3 billion. It fell 0.41% to close at $99.85 per share on June 28.
How Bunge Returns Value to Shareholders
Bunge (BG) paid $549 million to shareholders through dividends and share repurchases in 2015.
How to Navigate Uneven Economic Growth
A number of factors have contributed to the slowdown, including soft overseas growth and a sharp drop in capital spending by energy and mining companies.
Active Fund Management: Will It Make Passive Attractive?
In recent years, the performance of various mutual funds and hedge funds followed by an active fund management strategy haven’t been so impressive.
Why Is ‘Carry’ Compressed in Financial Markets?
In his investment outlook for June 2016, Bill Gross asserted that “carry” is compressed in nearly every form. It has more risk than return.
What Slowdown? US Steel Prices Rose 50% This Year
Steel companies’ earnings are sensitive to changes in steel prices. In recent quarters, their earnings have been negatively impacted by falling steel prices.
What Phase of the Business Cycle Are We In?
Studied in conjunction, stock market and economic conditions give clear indications of the business cycle phase we are in.
What’s Kellogg’s 2020 Vision Strategy?
Kellogg plans to return its “Kashi” brand to growth in 2016. It aims to lead in plant-based nutrition and win with “food forward” consumers.
Will Negative Foreign Exchange Affect Procter & Gamble in 3Q16?
Since December 2015, FX (foreign exchange) headwinds have increased $0.3 billion after tax. That includes devaluations in Argentina, Russia, and Mexico.
Where Are We in the Long-Term Debt Cycle? Ray Dalio Weighs In
According to Ray Dalio, the Fed needs to study the long-term debt cycle in order to understand the huge downside risks that currently face the US economy.
Why Did Inflation Rates Ease for Brazil and Chile?
Brazil’s inflation rate slowed for the second straight month in March. The annual inflation rose by 9.4%—compared to 10.4% in the previous month.
What Is Labor Market Slack?
The unemployment rate doesn’t help us gauge the extent of labor market slack. The actual employment gap that exists also consists of a slack component.
Saudi Arabia Is Depleting Its Foreign Exchange Reserves
It’s been more than a year since Saudi Arabia has had a new king, and what an eventful year for the country under his leadership!
Regeneron Pharmaceuticals’ Major Revenue Sources in 4Q15
Regeneron Pharmaceuticals (REGN) earns revenue from net product sales, collaboration, and technology licenses.Company & Industry Overviews The Energy and Materials Sectors Pulled VEURX into the Red in 2015
The Vanguard European Stock Index Fund was the worst performer for 2015 among the ten funds in this review.
Ethane Prices Rose, Benefiting MLPs
Mont Belvieu ethane prices rose 9% to $0.15 per gallon in the week ended January 1, 2016, from $0.14 per gallon in the previous week.
Macroeconomic Factors Affecting Investment-Grade Bond Yields
Investment-grade bond yields rose 8 basis points month-over-month and ended at 3.5% on November 30 due to high expectations of an interest rate hike in the December policy meeting.
Depressed Iron Ore Prices Will Strain BHP Billiton’s Cash Flows
Iron ore forms the biggest chunk of BHP Billiton’s revenues and earnings. For its latest quarter, the company delivered 7% year-over-year growth.
Why growth shifted in the global automotive industry
The automotive industry is geographically concentrated. The top 15 countries produce 88% of the world’s vehicles. Almost all of the G20 nations have a manufacturing unit.
