As the saying goes: Don’t Fight the Fed.
Here is my rather naive understanding of how Interest Rates influence equity markets and why I’m still bearish.
Let’s have a look at a very simplistic example of the following company:
Share price: $100
Debt: $100 (variable interest rate: 2% = $2/year)
Dividends: 3% = $3/year (payout rate is only 37.5%, nice!)
To keep things simple, the company pays no taxes.
Bottom line: after all the payments, we end up with $5 extra dollars every year.
$10 – $2 – $3 = $5.
What happens when interest rates start going up?
For example, from 2% to 5%.
Continue reading “The Triple Action of Interest Rates”
Since I’ve almost stopped using Twitter, that might be my last post about some “anonymous” Twitter account.
What can I say about @SecretCFO?
Continue reading “Not so SecretCFO”
Birchcliff Energy Ltd. is a dividend-paying Calgary, Alberta based intermediate oil and gas company that explores for, develops and produces natural gas, light oil and natural gas liquids.
Source: Birchcliff Energy website
Business was booming for Birchcliff Energy Ltd. (TSX:BIR) back in 2022 because natural gas prices were going through the roof.
Here is one of the interviews Birchcliff‘s CEO gave to Bloomberg:
Continue reading “Birchcliff Energy: One bad quarter for commodity prices won’t hurt our company”
Yes, it’s a cow! 🙂
A small update of the All-in-One Mahjong game, mostly because I need to do it for some bureaucratic/privacy reasons.
But just to not waste an update, I’ve decided to add 12 new layouts.
My favorite layout today is this Cow.