TSMC has made a smart entry into the Solar Energy space through investments into CIGs technology.Beside investing in a solar fab in Taiwan using Technology from CIGs startup Stion,it has also bought a 20% equity stake in Taiwan’s largest crystalline solar cell producer Motech.Now TSMC is further upping its Green Investments through a NT $5.5 […]

But with the imminent visit of President Obama to India,the government wants to put the final touch to the deal during November.The government has raised the cap Three Fold to $330 million in order to win the support of the main opposition party the BJP.However Greenpeace the international Green NGO has opposed the cap.The reason is there should not a be cap as it increases the moral hazard of the companies.With a cap on their liability,their is an incentive for the private players to loosen their safety standards.There is no cap on liability for any other type of industrial hazard so a nuclear cap also does not make much sense .The recent BP Oil Spill is estimated to cost BP around $20-30 billion despite the Disaster being of lesser magnitude than a Nuclear Accident like Chernyboyl.

The ETF does not make much sense for any class of investor.A Lithium investor would be better off investing in Rockwood,SQM and FMC with appropriate offsetting positions in the agri and speciality chemicals sector.A Battery Investor should invest in BYD,A123 Systems,Ener1 etc. rather than Sanyo,Exide and Cosco.Also a lot of the companies in the ETF have never made profits and are high risk in nature while stable holdings like Rockwood,SQM are expensively valued at the moment.I would advise against investing in this pseudo Green ETF which is only masquerading as a Lithium ETF.

There have been diplomatic skirmishes with China trying to block a ADB loan to the state and giving different visas to persons in that region.India has so far remained muted despite some border incursions by Chinese troops as well.India and Chinese political and trade relations have improved quite a lot in the recent years,however the trust quotient remains low between the world’s two most populous countries.China has used Pakistan as a proxy against India and has also been blamed over cyberattacks on Indian defense networks.India has responded by banning Chinese telecom equipment firms over security concerns.The rise of these 2 great powers and the dynamics between them will be the most important event shaping the 21st century.

To reduce its expense Vedanta will only pay Rs 355/share to minority shareholders in the open offer while offering Cairn Rs 405/share .This will include Rs 50/share for a non compete agreement.This seems a ruse to shaft minority shareholders as I don’t think Cairn poses much of a threat to Vedanta from further Oil Explorationin India.I don’t know how Vedanta’s returns from the Cairn’s oil fields can be impacted through Oil Exploration by Cairn’s parent in the future.Indian stock market regulator had earlier rejected Heidelberg’s premium to be paid to SK Birla Group when buying Mysore Cements stake.The controlling premium has been paid in earlier M&A by foreign promoters to Indian promoters.The area of controlling premium remains a grey one and I think it is being exploited by Vedanta to lower its open offer price.It remains to be seen if SEBI rules in the favor of the minority shareholders.

The stock might offer some short term profits for high risk traders on a dead cat bounce,but it is definitely not a fundamental pick.Unless the company really makes significant progress on the revenue and orders front,it is not a buy in my book.