September 2010
September 5, 2010
India and Russia have jointly developed the Brahmos Cruise Missile which is said to be one of the most advanced Cruise Missiles in the World.This Cruise Missile is also the Fastest in the world with a speed of 3000 km/hr or around 2.6 times the speed of sound and can be launched from multiple air,sea and land platforms.India's Traditional Adversaries Pakistan and China are one generation behind in the Cruise Missile Technology Race.While Pakistan's lone Cruise Missile Babur is based on the outdated Tomahawk Missiles,China's Cruise Missiles also don't match upto Brahmos in speed and sophitication.
September 5, 2010
ndia is one of the fastest growing economies in the world with fundamentals indicating that this rapid growth will continue for the next 10-20 years as well.However Green Investing in India is fraught with risk since major Green Energy Companies like Suzlon and Moser Baer have proven to be abject failures till now.A Good Way to do make Green Investments into India is through Renewable Energy Focused Utilities.Tata Power which is one of India's largest utilities is looking to focus on Green Energy as well.The company has 16% of its power supplied from Renewable Energy Sources and is looking to increase it to 25% by 2017.
September 5, 2010
The recent weather catastrophe in different parts of the world has pushed up the food prices.The Russian Wheat Export Ban imposed earlier had exacerbated the situation […]
September 5, 2010
Renewable Energy Tata, Origin and Supraco jointly win geothermal contract – Recharge News Iberdrola Wins 258 MW Contract for 9 Brazilian Wind Farms – RenewableEnergyWorld JDSU […]
September 1, 2010
Coal India Limited (CIL) would be a safe stock to invest in if it priced in the indicated manner that is a $33 Billion Market Capitalization.This stock won't be a multi bagger but would offer decent price appreciation with almost no downside risks.At trailing P/E of 15x and 3 year average trailing P/E of 20x,the company is not expensive given its competitive strengths.Its dividend yield would be around 1.5% with growth of around ~10-12%.However if you exclude $8.5 Billion in Cash,then the stock seems cheap at around trailing P/E of 11x.It has a P/B of 6x and P/S of around 3x.With its ASP being at a 65% Discount to the International Price,the Company has a huge moat around its business model and I would recommend it as a Buy.
September 1, 2010
China regards India warily and think it a threat to Chinese domination over Asia.India has responded meekly in the past but recent provocations have made India retaliate back.Chinese Navy presence in the Indian Ocean by building ports in Pakistan and Burma have further queered the pitch.China is also deploying advanced missiles at the Tibet Border while border violations are also rising.India's Cabinet is regarding this with increasing concern with a meeting called to assess the situation arising from Chinese troops in POK.An investment in India's Defense Industry makes good sense in such an environment
September 1, 2010
Empire Building through Unrelated Expensive Acquisitions make Reliance Industries Stock Underperform
Reliance Industries is known to have one of the smartest management teams in the country.The Reliance Group led by Mukesh Ambani is well connected with proven record in executing huge projects in the Oil and Gas Arena.However outside of their core competence,the Group has suffered.Its Retail Entry has not been much of a success despite big bucks being poured in the last 3-4 years.It entry into marketing of oil based fuels has also meandered without going anywhere.Now the Reliance Group has announced an entry into the Hotels Sector by acquiring a 14% stake in East India Hotels at a significant premium over the market price from the promoter Group.This ~$220 million investment is totally unrelated to Reliance's activities and make no strategic sense.
September 1, 2010
This Program will try to avoid the disadvantages of Feed in Tariff Schemes as it will introduce a Market Based Element into the Tariffs.However this project is still at a preliminary stage and will need a lot of fine tuning.Note similar scheme have been implemented in China and India as well.The Chinese 280 MW of Projects have seen cuthroat competition with loss making bids by State Owned Utilities.It remains to be seen whether California can make a success of this RAM Program where China has failed.Even India has reported a huge response for the JNNSM First Phase of PV Projects.The Success of this California program will be crucial as it might serve as a template for future programs by other states and the Federal Government.
September 1, 2010
Wind Energy in the USA has hit an Air Pocket in 2010 with Low Prices for Gas and lack of a Federal Push for Green Energy.The end of 30% Cash Grants for Wind Investments by 2010 end may lead to a worse 2011,if the incentives are not extended by the Congress.Note Wind Energy is the cheapest form of Green Energy with prices of 8-10c/KwH and the second most prevalent form of Renewable Energy after Hydro Power.China has become the largest installer of Wind Energy in 2009 with 13 GW showing a 100% CAGR over the last 2-3 years.