News

June 4, 2017

Financial Analysis of Oil and Gas Market – June 2017

Over the past two years, the oil and gas industry has seen one of the longest downturns since the 1990s. If we can take any cues from history, we can say that after every oil bust comes a recovery. However, this time the recovery is more of a slow grinding crawl, at best. Bubble size represents market cap FIGURE 1: PERFORMANCE OF OIL AND GAS COMPANIES Description: Figure 1 highlights the performance of the oil and gas industry for the month of May 2017 (x-axis) and the performance of the […]
June 4, 2017

Financial Analysis of Gold Market – June 2017

Gold barely moved in the month of May, having gone down by half a percentage point. But if we look under the hood, gold has had an active month and it seems to just be getting started. In less than 15 days, the U.S. Fed will reach a decision about raising interest rates and could announce another quarter point increase. As of May 30, 2017, chances of the Fed raising interest rates stood at 88%. Although it is important to mention that during the market sell-off that occurred two weeks […]
April 24, 2017

Financial Analysis of Oil and Gas Market – April 2017

With prices leveling off and a continued resurgence in American production, oil has been having a tough few days. Oil stockpiles are at historic highs and price predicting analysts are all over the map. Bubble size represents market cap FIGURE 1: PERFORMANCE OF OIL AND GAS COMPANIES Description: Figure 1 highlights the performance of the oil and gas industry for the month of April 2017 (x-axis) and the performance of the 11 months prior to April 2017. Analysts’ predictions range from a 20% decrease from current levels to about $42 […]
April 24, 2017

Financial Analysis of Gold Market – April 2017

The price of gold has risen ~12 percent year-to-date, and it looks like the upward trend will continue. Sentiment has turned up in the gold market the last few weeks. Data from the top gold consuming country – India – shows there may indeed be cause for optimism among gold buyers. Bubble size represents market cap FIGURE 1: PERFORMANCE OF GOLD MINERS Description: Figure 1 highlights the performance of the gold mining industry for the month of April 2017 (x-axis) and the performance of the 11 months prior to April […]
March 8, 2017

Financial Analysis of Oil and Gas Market – February 2017

Despite the near record increase in U.S. oil inventories last week – an increase of 13.8 million barrels – oil prices traded up in February. The abnormal crude stock increase took inventories close to 80-year record levels at 508 million barrels, and is evidence that should worry oil bulls. However, the oil markets were not deterred. In fact, that has been a defining characteristic of the market in recent weeks – optimism even in the face of some pretty worrying signals about the trajectory of the market. Bubble size represents […]
March 8, 2017

Financial Analysis of Gold Market – February 2017

Gold has been on a bull run since it bottomed at 1,125 last December, one day after the Fed Meeting. Gold made its first run from 1,125 to 1,220, up 95 dollars, then pulled back and made its local bottom at 1,180. The run resumed then and topped at 1,247 on Feb 8th. It closed at 1247.60 on March 1, 2017. Bubble size represents market cap FIGURE 1: PERFORMANCE OF GOLD MINERS Description: Figure 1 highlights the performance of the gold mining industry for the month of February 2017 (x-axis) […]
March 8, 2017

Digital transformation is ultimately about culture

If you as a talented executive find your head spinning with hundreds of options to digitize your operations, here is a pointer. A decade ago, popularized technology innovation migrated from redesigning salt shakers and door handles to tackling the industrial world. Along the way, autonomous vehicles, knowledge hubs and collaboration centers entered our work space and occupied much of our thinking time. That was a decade ago. On the other side of this story is the future made up of artificial intelligence, machine learning with real time information piped from […]
January 31, 2017

Strategy and Digital Transformation

We develop strategies with some objectives in mind: Digital transformation is about optimizing the performance of the company. Often the organization begins to sense panic, that they have fallen behind in their business execution constructs and now need a specific intervention so that the organization can catch-up with current digital developments and hopefully jump the learning curve on a few ideas that would give them a competitive advantage. It’s true that in the wonderful world of technology advances, many companies have found new fortunes by changing their business model – […]
January 31, 2017

Financial Analysis of Oil and Gas Market – January 2017

It will not surprise any investor in oil and gas and related businesses that theirs is a cyclical business. Prices run up when supplies fall short of demand, hover around peak for a few years, then tumble as new supply sources are developed and demand growth slows down. 2016 has not been an easy ride for anyone at any level in the industry. Last year would have been an epic fail had it not been for the Saudis cutting 1.2m bpd, Iraq reducing output by nearly 20%, and Russia leading […]
January 31, 2017

Financial Analysis of Gold Market – January 2017

Gold managed to rebound slightly in 2016, rising 8% and making back a bit of the lost ground that it has suffered in previous years. A new U.S. president has entered the Oval Office this year. His policies, while embraced by Wall Street, are untested largely. Trump’s first few days in office and he has already signed a bunch of executive orders making good on some of his campaign promises. Suffice it to say geopolitical tensions are fraught at this point and this could be good news for gold. Month-to-date […]