Try GOLD - Free

Echelon Magazine - January 2017

From Choose Date

To Choose Date

Echelon Magazine Description:

Publisher: Capital-Media-(Pvt)-Ltd

Category: Business

Language: English

Frequency: Monthly

Intelligent Storytelling

The one thing that will define the Echelon magazine will be the quality of the storytelling. Echelon,published monthly, will cover in depth Sri Lanka’s most successful businesses, examine their winning strategiesand profile their leaders in immersive stories. Great stories are also never limited to words, and our approach includes rich photography, bold graphics and leading edge design which together will make for a compelling read.

But business doesn’t start and end in a boardroom;it extends to the golf club greens, to international travel and to pursuits that blurthe lines between commercial venture and sheer passion. The Echelon team will present the best in business and lifestyle coverage that will appeal to an exclusive and affluent readership: an otherwise hard to reach demographic.

Content will be developed by one of the most experienced and proven teams of editors, financial journalists, photographers and designers in the country.This team has already raised the bar for powerful and expertly crafted business news. Shamindra Kulamannage, will lead the editorial team.

The reputation of Echelon is being built on the separation between editorial and advertising. However we are also looking for the most creative and impactful new formats that can be applied in our magazines, iPad app as well as website to help our clients reach our audience. We are flexible and creative and we will have a solution for every single advertiser who wants to reach our audience.

We are passionate about creative results and about working with our advertisers to help them create bespoke multi platform creative solutions with our in house creative team and of course our sales team.

Echelon will be a great place to show off the products and capabilities of our clients because they will be surrounded by an editorial product that is expertly crafted, full of integrity and intelligence.

In this issue

A turning-point?

The overbearing deflationary theme in stocks is due a correction

There are a number of theoretical ways for valuing stocks. One that appears most apt in the current circumstances is the discounted current value of future cashflows an investor will receive. The trouble is figuring the appropriate discount rate. There are, of course, the useful benchmarks like the yield curve for government debt. Twelve-month T-Bills yield 10.1% and the 5-year bond is touching 11.8%.

Share prices declined more than 10% in the one year to mid-December 2016. Falling share prices indicate that investors expect future cashflows to be lower than previously forecast. That could be because they expect profits to fall or they are now demanding a higher return (discount rate) for owning shares.

Expectation around the discount rate (company earnings growth or decline and risk premium for holding equity) may rapidly evolve in 2017, compared to last year. In the September quarter of 2016, corporate earnings were up 24%, momentum some analysts expect would carry to 2017. If earnings growth beats expectations, the discount rate will deserve reviewing.

The risk premium is a little trickier to figure. Interest rate expectations have a bearing and so do the risks and returns from alternate asset classes. Best of luck figuring all that out!