infotonic

Is Power is the new dotcom? The report in some media papers refers to the surge in the number of companies of all kinds wanting to get into the power business. This is a scary scenario. This is given that power is not an easy business to pursue.With a host of regulations and execution risks that even large power companies face, new players will have a tough time making any business sense of their overtures. Forget the small companies, i am also wary of some large companies that recently floated IPOs to raise money for their power sector plans and this is where i believe things could turn out to be worse than the dotcom bust. With backgrounds in non-related sectors like real estate and trade, some of these companies are just jaywalking into the power minefield. And when they would realize their incapabilities in the future, probably it might've been too late for them, and their investors. It is important to stay away from such companies that are foraying blindly into the power secto...

If everything goes well, in a few weeks from now, we may have sown the seeds of a major bull run. We say so because a new wave of stimulus money is most likely to be unleashed in the biggest economy of the world, the US. Sensing that the current efforts are not keeping more people employed at their work, President Obama has called for a major new burst of federal spending. "We avoided the depression many feared. Our work is far from done," Obama thundered in a recent speech. He further added that he wants to spend new money for highways and bridge construction and for ensuring adequate social security net for the US citizens, especially to the unemployed. And the figure that is being talked about is in the region of US$ 170 bn. Of course, given the kind of fiscal mess that the US is in, spending more would have meant going further down the path of suicide. But what has given some government authorities hope is the unexpected windfall that the government is likely to make from...

Hero Honda: Strong performance continues Hero Honda (HH) continued its robust performance with sales of 0.38 mn units (up 32% Y-o-Y, 7.7% M-o-M) for November 2009. It seems to have recouped from the impact of a strike last month. Despite increased competition, HH continues to dominate the core executive segment and benefits from its strong rural presence. With underlying demand remaining strong, the company is clearly on the path of beating its guidance of 4 mn units for the full year (particularly, with inventory at the lowest levels). Maruti Suzuki: Domestic segment drives growth Maruti Suzuki’s (MSIL) domestic volumes, at ~76,000, were up 60.1% Y-o-Y and 6.7% M-o-M. Key growth driver has been the A2 segment that performed well Y-o-Y as well as M-o-M, mainly on account of improved production at Manesar plant (manufacturing Swift); the waiting period for Swift has declined in the past month as allocations have increased. Export volumes declined 17.4% M-o-M which may be indicative of ...