Key points :
On November 17, 2006 the US Senate passed the bill to implement civilian nuclear energy cooperation with India. During July 2005, India and the USA had reached an agreement on the separation of civil and military nuclear plants and technology transfer for civil nuclear plants.
The Indo-US nuke deal brings a reliable source of nuclear technology that can be exploited to set up nuclear power plants in India. This in turn could possibly go a long way in quenching India’s current and projected thirst for power. Needless to say that the companies like BHEL, Larsen & Toubro, KSB Pumps and Honeywell Automation that provide products and services for nuclear power plants would be the primary beneficiaries in this scenario.
India’s power generation today is approximately 15% below the actual consumption. As per the energy and resources institute (TERI) the projected economic growth of 7-8% over the next 20 years will quadruple India’s energy needs.
Coal, the main source of India’s energy needs today, is peaking its exploitation and the gas supply from Iran via a pipeline is unlikely to materialise due to the US opposition.
Hence if India’s power generation has to keep pace with the burgeoning economy, nuclear power has to provide a significant component of it, as opposed to its current contribution of 3%. A very plausible scenario to look at is the building of nuclear power plants with the help of the USA.
Saturday, November 18, 2006
Dell Continues to Upset Amidst Positive Expecations
Dell: Dude, Now You Are Making every one Mad.
Last Night New's that Dell isn't going to release fiscal third quarter results on time, and that the Securities and Exchange Commission (SEC) is now conducting a formal investigation of the company, has left the Street irritated over both the company's ongoing troubles and its relatively sparse explanation for what specific issues the regulators are examining.
While there is growing sentiment that the company has laid the groundwork for better margins, the regulatory woes have pushed the fundamental story out of the picture, at least for the moment.
Laura Conigliaro of Goldman Sachs. She wrote today that she sees the latest announcement "as potentially part of a larger picture involving Dell internal controls, noting that in addition to the "accruals, reserves and other balance sheet items" referred to in an 8-K filed with the SEC on September 11 , "ineffective controls relating to Dell's fundamental business have shown up in the past few quarters in the form of unecessarily aggressive pricing, badly chosen go-to-market strategies, and poor customer service-related decisions."
In Conigliaro's view, the earnings pushouts and formal SEC probe, on top of cancelled analyst meetings and "other execution miscues," will "override any but the most extreme improvements in Dell's fundamental business for the near-term."
She also worries that there is now "a very real possibility" that the situation could lead to management changes and create even more uncertainty around a company "that has already decided to provide less detail and no targets.
"Richard Farmer, an analyst at Merrill Lynch, who has a Neutral rating on the stock, notes that Dell now faces four investigations: the SEC, U.S. Attorney for the Southern District of New York, the board's audit committee, and its own financial and legal teams. Uncertainty around the company, he notes "is increasing."
Shaw Wu, of American Technology Research, theorizes that the issues "could be related to Dell's treatment and accounting of marketing rebates from Intel and its product warranties." He is Neutral on the stock, and worries that "Dell's problems are structural in nature where its cost advantage has been greatly narrowed and its direct model is not ideal is addressing key segments, including consumer and international."
The bottom line is that while fundamentals may be improving, as bulls like, Citigroup's Richard Gardner note, most investors appear too distracted by Dell's other problems to care.
Dell shares today are down 87 cents at $24.88.
Last Night New's that Dell isn't going to release fiscal third quarter results on time, and that the Securities and Exchange Commission (SEC) is now conducting a formal investigation of the company, has left the Street irritated over both the company's ongoing troubles and its relatively sparse explanation for what specific issues the regulators are examining.
While there is growing sentiment that the company has laid the groundwork for better margins, the regulatory woes have pushed the fundamental story out of the picture, at least for the moment.
Laura Conigliaro of Goldman Sachs. She wrote today that she sees the latest announcement "as potentially part of a larger picture involving Dell internal controls, noting that in addition to the "accruals, reserves and other balance sheet items" referred to in an 8-K filed with the SEC on September 11 , "ineffective controls relating to Dell's fundamental business have shown up in the past few quarters in the form of unecessarily aggressive pricing, badly chosen go-to-market strategies, and poor customer service-related decisions."
In Conigliaro's view, the earnings pushouts and formal SEC probe, on top of cancelled analyst meetings and "other execution miscues," will "override any but the most extreme improvements in Dell's fundamental business for the near-term."
She also worries that there is now "a very real possibility" that the situation could lead to management changes and create even more uncertainty around a company "that has already decided to provide less detail and no targets.
"Richard Farmer, an analyst at Merrill Lynch, who has a Neutral rating on the stock, notes that Dell now faces four investigations: the SEC, U.S. Attorney for the Southern District of New York, the board's audit committee, and its own financial and legal teams. Uncertainty around the company, he notes "is increasing."
Shaw Wu, of American Technology Research, theorizes that the issues "could be related to Dell's treatment and accounting of marketing rebates from Intel and its product warranties." He is Neutral on the stock, and worries that "Dell's problems are structural in nature where its cost advantage has been greatly narrowed and its direct model is not ideal is addressing key segments, including consumer and international."
The bottom line is that while fundamentals may be improving, as bulls like, Citigroup's Richard Gardner note, most investors appear too distracted by Dell's other problems to care.
Dell shares today are down 87 cents at $24.88.
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