Approach

At Divine Capital, our goal is to be a thought leader in the broad investment theme we call Efficiency 3.0.

  With the global economy undergoing a cycle of accelerating complexity and interconnectivity, as well as heightened resource competition and scarcity, we see in response a convergence of economic, technological and regulatory change towards long-term structural gains in efficiency.

We believe the breadth and scope of our Efficiency 3.0 theme can provide investment opportunities over several business cycles.

Within this theme, we screen the universe for emerging trends in how we make, move and consume power more efficiently, where adding intelligence to a business advances productivity and which companies have the potential to be leaders. Once identified, we then provide comprehensive research coverage of those publicly-traded companies that (we believe) will offer our clients superior investment opportunities.

 

Divine Intelligence

 In our 12.19.11 installment of the Divine Intelligence report:

• The primary threat to equity markets remains declining liquidity. This is not being priced currently.

• Credit markets reflect high risk with short-term trading demand improving, and neutral sentiment persists for equities.

• Short-term conditions increasingly favor a year-end rally, with traders buying dips near to 1,215 (SPX).

 Please download the pdf for discussion on short to intermediate-term conditions and important disclosures, and contact research@divinecapital.com  directly with any questions.

 Our 12.13.11 inaugural weekly Divine Intelligence note begins with calendar highlights:

•  Retail sales, production and price measures for the US, EU and China are expected to be dominated by the European financial crisis in terms of market impact.  

• In last week's Strategic Focus, we noted the key long-term market drivers, liquidity and discounted cash flows, are under growing pressure. 
• Credit markets have taken this to heart, and we estimate that the threat of a credit crunch could begin to weigh on equities following December 31 mark-to-market actions.
• Liquidity concerns would impact speculative positions the most.  As such we are keeping a watchful eye over revisions to 2012 EPS estimates and CapEx estimates, however in the short-term, we believe prices are setting up for a brief year-end rally.

  Please download the pdf for discussion on short to intermediate-term conditions and important disclosures, and contact research@divinecapital.com  directly with any questions.