In our Financial linked world where Capital is Globalized while Regulation is not,Hot Money Flows are fueling inflation and asset based bubbles in Developing Countries.Some of the Emerging Markets are either close to or have surpassed the 2008 all time highs.Inflation is also hitting dangerous levels in some countries like Argentina,India and others.The depreciating dollar brought upon the the US Federal Reserve Printing of money has made it necessary that the Central Banks purchase Dollars.This has been done not only by Brazil and Singapore but also by Japan.With more Dollar Printing,these Purchases will increase the Liquidity in the Developing Countries.This is a sure shot recipe for high inflation which will be difficult to control.India has already raised Interest Rates 5 times this year in order to rein in the pernicious effects of high inflation on its largely poor population.

Finland is a Fossil Fuel Deficient country getting 30% of its power from Nuclear Energy and 28% from mostly Biomass and Hydro Energy.It is constructing more Nuclear Power to meet it future needs but a Recent Nuclear Plant has caused massive headache.Finland’s Power Sector has been in the news recently for all the wrong reasons.A Nuclear Plant being built on a Baltic Sea Island of Olkiluoto has entered the annals of Project Finance as one of the biggest Disasters.The main contractor Areva which is the worlds’ leading nuclear equipment supplier has surprisingly totally messed up.The original plan of builing the 1600 MW nuclear reactor for 4 billion Euros has doubled to 8 billion Euros.There are reports of faulty concrete bases and steel containers.There is already a blame game between the constructing companies Areva,EDF,Siemens and the government.The time and cost delay has truly been of epic proportions.Areva which is a giant conglomerate has suffered losses on account of just this one project.

NRG Energy is one of the largest utilities in the US with around 22 GW of Installed Capacity.However like Exelon,the share of Renewables is relatively low at just 2% of its overall Energy Capacity.Though the US Administration has all but given up on an Energy and Climate Legislation,Big Utilities recognize the need to generate low carbon electricity.Some sort of Carbon Emissions Restraint will be imposed on Utilities sometime in the future with EPA itching for action in restricting CO2 Emissions.Green Sector Stocks have fallen like a rock in 2010 due to the Copenhagen Disaster and lack of movement on a Climate Bill by the US government.Therefore it makes sense for US utilities to buy Renewable Energy Assets on the Cheap.Exelon bought Deere Energy Wind Farms at a dirt cheap price.NRG Energy which has around 550 MW of Wind and Solar Capacity bought Reliant Energy last year for $300 mm.It has augmented its Renewable Energy Portfolio with another $350mm buy of Green Mountain Energy.

BYD has fallen almost 35% this year heavily underperforming the market as sales growth has slowed substantially.After a 140% growth in Auto Sales last year,this year the sales growth will go down to 30% as the company has reduced sales target to 600,000 from 800,000 earlier.Chinese auto sales have fallen and BYD has been specially affected with its workhorse F3 Model declining in popularity.The company delivered a good first half with $100 million in 2Q profits.However the company is still quite expensive at $15 Billion Market Cap which would give it a P/E of around 38x.Also the company’s strategy to enter solar energy does not make sense.However BYD is a good story for the future.China has made a new Green Policy to create National Champions in the EV and Battery Industry.BYD is a perfect candidate with its strengths in both areas.While its execution in the EV sector is yet to give results,it is already planning into the future getting into the Grid Storage Sectors.I would not put money presently but would wait for a better entry point in the future.

USA is increasing its protectionist actions recently filing 2 cases in World Trade Organisation against China over Electrical Steel and Credit Card payment providers.Only last week a US Union had filed a complaint with the US government about the Predatory Practices of Chinese Green Companies.USA thinks that China has unfairly put duties on US made Steel and it is locking out Mastercard and Visa from the credit card processing market in China.There is little doubt that China indulges in favoritism and implicit and explicit support of domestic companies.However it the scale that is the only difference .Like all other things China also implements its policies king size.MNCs in recent times like GE,Google,Siemens have all criticized Chinse discrimination against foreign companies.However WTO remains an ineffective body to resolve complex Trades Disputes.The US Congress is also getting into the China-Bashing Act by passing 2 bills that mandate “Buy American” clauses.The US has already antagonized the Indian IT Industry by specifically targeting the Indian companies like Infosys and Wipro.These new bills target China making it mandatory for government departments to buy American made goods.With November Elections fast approaching,politicians are outdoing each other in protectionist rhetoric.

Eros International Media Limited (EIML) is one of the biggest owners and distributors of Indian Films.It owns a Film Library of around 1000 Indian Films including some inconic titles.The Company is involved in the business of sourcing,creating and distributing media content which is mainly films.It has grown at a fast clip in the past 3-4 years though the last year was slower on account of the GFC.It is a part of the Eros Group Plc and has till now grown mainly through the financial backing and networking of its parent.There is a lot to like about this IPO and very little to dislike.The valuation on a P/E basis is also not expensive at around 19x.Given that the Indian economy is booming with Entertainment one of the hottest sectors,this is a good play on this sector.Here are some of the highlights from their DHRP