In the long-term, ROCs (and their rate of change) drive stock prices of banks. Most GEMS banks have created a capital base from retained earnings and have virtually no long-term debt. Therefore, Return on Equity IS Return on Capital. The low denominator creates impressive returns on capital from 8%-18%. These ROCs can easily meet or beat the cost of capital Please contact us to obtain full access of our weekly reports.
Paul Schulte has had a career in equity research which spans 22 years on both the buy and sell sides covering the Asian and emerging markets. He also has 5 years of government policy experience in emerging markets. He has been frequently ranked in top-five…read more
Philosophy
The Schulte Research Report focuses on banks, bank credit, liquidity & corporate solvency. Bank credit drives economics, not the…read more