WINNING STROKES: THINK DIFFERENT
Southern Online Bio Tech Ltd hit another buyer freeze today, at Rs.2.90, in the opening trade. Today it went up with good volumes, which means lot of persons (investors/traders) are entering the counter. Now, it is pertinent to mention here that, the price of bio-diesel is kept artificially low in India--price of bio-diesel is almost half of the subsidised fossil, diesel. Hence, there are ample chance that this price is expected to increase, in the coming days; especially after Mr.Kishor Goswami and Hari Kanta Choudhury of the Department of Humanities and Social Sciences, Indian Institute of Technology, Kharagpur, appealed to the Government to think seriously in favour of raising the market price of jatropha for sustainability of the industry in the North East region. The price of Jatropha cannot increase unless the price of Bio--diesel increases and hence, the government might now seriously think of increasing the price of Bio--diesel in India. This augurs well for the company. Moreover, the Mysore City Corporation (MCC) has started using biodiesel, an eco-friendly fuel, for running some of its vehicles. The Biofuel Information and Demonstration Centre, set up by the Karnataka State Biofuel Board with the support of National Institute of Engineering (NIE) on the NIE campus, will provide biodiesel to the corporation. CLICK HERE. Though biodiesel fades in comparison to the performance of gasoline, western countries are increasingly choosing the fuel. In these days, when crude trades over $80 a barrel, biodiesel is economical. Secondly, in the US, the states like California have already begun incentivising use of alternative fuels that are low in carbon emission. Biodiesel, an equivalent to crude derived diesel, is processed from biological sources. Southern Online Bio Tech Ltd generally makes its biodiesel from Jatropha plant with overseas technology. The plant derived biodiesel can be used in normal diesel engine vehicles without modifying them. Biodiesel produces between 40-60% lesser carbon dioxide emission but emits more smog forming residues. Vehicle manufacturers in Europe, who were initially vary of biodiesel, are now more willing. European auto makers like Scania now say that their vehicles can run on 100% biodiesel.
A scrip in the realty and infrastructure space was recommended to the Paid Service members today. The scrip hit the buyer freeze before coming down a bit when the market cracked in the late hours. The price of the scrip is Rs.24.95 and FY12, EPS is Rs.8.38 (standalone). What is the name of the scrip?
Southern Ispat and Power Ltd hit another buyer freeze on the opening trade. I think another two mining stories, Jai Balaji Industries Ltd (CMP: Rs.36.30) and Prakash Industries Ltd (CMP: Rs.47.95) will soon pick up steam.
SEL Manufacturing Company Ltd moved to Rs.4.79 today before cooling a bit. The textile sector will move from the next month.
My recommended Tata Steel Ltd today touched Rs.436, before cooling down a bit. If you remember the scrip was recommended around Rs.378, with a price target of Rs.397 and Rs.425, which has long been achieved. On the other hand SAIL touched my first target of Rs.91 today. This scrip was also recommended around Rs.81-82.
