Interesting move

Everonn moves into the business of school uniform.
http://www.thehindubusinessline.com/companies/article2107323.ece

BGR Energy

There is a BSE announcement made by BGR wherein BGR has said, they have surrendered its Category I (previously Category-F) trading license obtained from CERC. The CERC has cancelled the said electricity trading license in its order dated April 29, 2011. I was reading the petition document, the reason given by BGR is "Due to highly competitive power trading business, uncertainty prevailing in the market and risk associated with it, it has not been able to undertake any inter-state trading in electricity".

Is there a possibility that more smaller players start surrendering their licenses as the margins are thin and volumes get too dispersed if there are too many players? I mean should this not be beneficial to bigger players as competition decreases for them due to un-viable economics of small scale operations? Not saying it can be a trend, but does it not show that the industry cannot support a large number of players and over time only the players with large volumes(read PTC) or captive volumes(read tata power) enough to justify a minimum 12% RoE will only sustain in the business?

The market has reacted positively to this news and BGR is up today.This business does not even contribute a minuscule % of their revenues, yet the stock has moved. I find it strange, or  am I missing something in terms of the money tied for getting the license that might get released after the surrender.

Thomas Friedman - :)

There are two superpowers in the world today, There's the United States and there's Moody's Bond Rating Services. The US can destroy by dropping bombs and Moodys can destroy you by downgrading your bonds.

The need to shift to Mumbai

"To achieve speedier growth it necessitated proximity to financial markets. It therefore planned to shift its registered office to mumbai." - A listed entity on the reason to move to mumbai

Found it really amusing as to how shifting office to mumbai can lead to speedier growth, the company failed to mention if that speedier growth was in share price or underlying business. I dont think mumbai offers anything additional to the company in terms of business, apart from the fact that the company would be closer to investors. But there are numerous examples of companies headquartered in Mumbai but still their share price not reflective of their value. Have put the company on my watch list for seeing how the change reflects in its share market performance going forward.