The Platts Top 250 Global Energy Companies 2016

Platts, a unit of S&P published its annual ranking of the top 250 global energy companies for 2016. This list an excellent resource for investors looking to research the energy industry’s top players for potential investment opportunities.

US oil giant ExxonMobil(XOM) tops this year’s list. Exxon has taken the top spot for the 12th consecutive year. The next top ranked firms are South Korea’s Korean Electric Power or Kepco and Russia’s oil major Gazprom(OGZPY).

The Platts Top 250 Global Energy Companies 2016:

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Source: Platts and  Platts Insight – Autumn Issue


Disclosure: No Positions

The Economy of Mexico: Infographic

Mexico is one of the largest emerging markets. Due to its close proximity to the US, the Mexico plays a critical role in the US economy and politics than other markets like Russia, India, China, etc.

The Manufacturing industry is the largest industry in Mexico. Some of the other facts about the Mexican economy is shown in the follow graphic:

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Source: NAFTA Works (Mexico Ministry of the Economy)

Global Stock Market Valuations: Which Markets Are Cheap And Which Markets Are Expensive?

Valuation is important when investing in equities. Investing in stocks when valuations are cheap not only offers some downside protection but also juices the return when markets soar.

The table below shows the valuations of major equity markets today based on four metrics:

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Source: How low rates affect stockmarket returns, Schroders

The lower the P/E ratio the better. The sameee goes ffor CAPE or cyclically-adjusted price-to-earnings ratio and price/book ratio.

Higher Dividend yields are better than lower yields.

Based on the CAPE ratio, the US market is expensive. The value of 79 shows that the market has been cheaper 79% of the time than it is today.

The US has the lowest dividend yield at 2.1% while the UK has the highest yield. The US yield is lower than even emerging markets yield.

The Top 10 Italian Companies By Market Cap 2016

The European Union may be plunged into crisis again with today’s developments in Italy. Following Brexit and the election of Trump in the US, the revolt against the establishment continues with Italians voting “no” in the referendum. The Italian Prime Minister Matteo Renzi has resigned following the heavy defeat in the referendum. From a BBC article:

Sleepless nights and uneasy prospects – BBC Europe editor Katya Adler in Rome

EU leaders won’t have slept much on Sunday night. Angst about Italy makes an uncomfortable bedfellow and there’s plenty for them to worry about. Particularly in Brussels. Prime Minister Renzi was the only premier left in Europe with a vision for the EU’s future. Angela Merkel is too busy crisis-managing while much of France is in thrall to Front National eurosceptics.

But Matteo Renzi is no more. The self-styled reformer with his promise to stabilise politics and kick-start the Italian economy has managed quite the reverse.

Italy wakes up on Monday to the threat of a banking crisis, political turmoil, and a group of anti-establishment populists banging on the doors of government. Eurozone beware and EU be warned. Italy is the euro currency’s third largest economy and it’s in for a bumpy ride. And there are more unpredictable votes to come in 2017: in France, Germany the Netherlands and perhaps here in Italy too.

The No vote was supported by populist parties, and the referendum was regarded as a barometer of anti-establishment sentiment in Europe.

The populist Five Star Movement says it is getting ready to govern Italy now that Mr Renzi is resigning. “Starting tomorrow we’ll be at work on a Five Star government,” one of its leaders, Luigi Di Maio, said.

The movement, led by comedian Beppe Grillo, spearheaded the winning No campaign.

Opposition leader Matteo Salvini, of the anti-immigrant Northern League, called the referendum a “victory of the people against the strong powers of three-quarters of the world”.

Source: Italy referendum: PM Matteo Renzi resigns after clear referendum defeat, BBC

European equity markets and Italian equities in particular will be volatile over the next few days due to the outcome of the elections tonight. Value investors trying to pick up Italian stocks may want to wait a while until the dust settles.

It has been a few years since I wrote about the top companies in Italy. In this post, let’s take a quick look at the top 10 Italian firms by market capitalization:

S.No,CompanyIndustryMarket Cap (in Euros)Dividend Yield (%)
1Eni SpAOil & Gas Producers52.52bn5.91%
2Enel SpAElectricity41.56bn4.44%
3Intesa Sanpaolo SpABanks38.00bn6.57%
4Luxottica Group SpAPersonal Goods25.94bn1.77%
5Assicurazioni Generali SpANonlife Insurance20.49bn5.85%
6Tenaris SAIndustrial Metals19.57bn2.60%
7Atlantia SpAIndustrial Transportation18.51bn4.38%
8Telecom Italia SpAFixed Line Telecommunications15.51bn--
9UniCredit SpABanks13.75bn5.76%
10Snam SpAGas, Water & Multi-utilities13.41bn6.96%

Source: FT Stock Screener

Eni SpA (E) , the oil and gas giant is the largest Italian public company based on market cap. The ADR trading on the NYSE currently has a dividend yield of over 6% and closed at $28.75 on Friday.The next top firm is the electric utility Enel SpA(ENLAY).

Intesa Sanpaolo SpA (ISNPY) and UniCredit SpA in the top list can be avoided at this time due to the crisis in the Italian banking sector. The oldest bank in the world, Banca Monte dei Paschi di Siena S.p.A.(BMDPY), may face collapse if a new government does not engineer a bailout.


Disclosure: No Positions