Saturday, November 01, 2014

Rohit Ferro Tech Ltd recommended recommended a couple of days back to the Paid Group members, yesterday touched Rs.10.45, before closing at Rs.10.10, up 5.4%. The Company has acquired 60% equity stake in a coking coal mine in Indonesia owned by M/s. PT Bara Prima Mandiri through its subsidiary M/s. SKP Overseas Pte. Ltd., Singapore. The mine located in Central Kalimantan Province of Indonesia has an estimated coking coal reserve of 10 MN Tonnes. The Company is also having 60% economic interest in a thermal coal mine in Indonesia owned by M/s PT Palopo Indah Raya through its aforesaid Subsidiary. The mine located in Central Kalimantan Province of Indonesia has an estimated thermal coal reserves  of 20 MN Tonnes. The group now has a total installed capacity of 2,74,583 mtpa of ferro alloys. The book value of the shares of the company is Rs.50.94.Yesterday, it gave a clear upward break-out in daily charts with good volumes. Will it hit the upper circuits on Monday, as the steel shares are moving up, due to new optimism created after the government relaxed norms, in the construction and real estate, sectors.  
Country Club Ltd made a  new 52-week high yesterday, when it touched Rs.19.70, intra-day. The scrip was recommended around  Rs.7-8, if  you could recollect. 
Yesterday, was the field day for the Jaiprakash Group shares. My recommended J P Power Ventures Ltd raced to Rs.13.39 intray, before closing at Rs.13.27. Similarly. J P Associates Ltd moved to Rs.31.70, intra-day before closing at Rs.31.10. In order to boost to cash-starved real estate industry, the NDA government recently, relaxed rules for FDI in the construction sector by reducing minimum built-up area as well as capital requirement and easing the exit norms. Although 100 per cent foreign direct investment was allowed in townships, housing and built-up infrastructure and construction developments since 2005, the government had imposed certain conditions. The analysts think this new development will help the companies like Jaiprakash Associates Ltd (J P Associates Ltd). Hence, we can again look for targets of Rs.80-90, in the coming weeks. Meanwhile, the Economic Times, wrote on 27 October, 2014: "Titan, Axis Bank, Jaiprakash Associates, Larsen & Toubro, Tata Power, Havells India, Jain Irrigation, GMR Infrastructure, Bhushan Steel, JP Power and Jindal Steel were among the top buys of retail investors in the three months ending September 30". The scrip is expected to move vertically from here---therefore those are still away from the bus stop, are request to kindly book your tickets for this superb journey, before it is too late. 
Allied Digital Services Ltd, hit another buyer freeze yesterday and the scrip closed at Rs.19.50. The journey of the scrip to the BULL-SPHERE has just begun, and it is time that it will cross Rs.50. According to my close sources, the company is expected to come up with better results from Q3FY14 (December, 2014 quarter). The optimism is surrounding that is pushing the scrip high, in this BULL MARKET, as we are at the middle of the December, 2014 quarter.
Resurgere Mines and Minerals Ltd, yesterday closed flat at Rs.1.68. The company has started mining in its SOAPSTONE MINES, in Rajasthan. Therefore, it is NOT TRUE that the company dos not have any sales. The book value of the shares of the company is Rs.27.14, which is more than 16 times the CMP of Rs.1.68, speaks volumes about its financials. It only needs a spark in the form of a comprehensive mining policy from the GOI, to shoot past its FACE and BOOK values.
My recommended Tata Steel Ltd around Rs.450 yesterday touched the short term target of Rs.480, as the scrip rallied to Rs.492.70 intra-day. I feel Indian and Taiwan's steel industries are likely to benefit the Japanese Stimulus package. The bank will now make asset purchases at an annual pace of around 80 trillion yen, an increase from the previous 60 to 70 trillion yen target range. In a similar case earlier, the heavyweights of Taiwan's steel industry, including China Steel Company and Sheng Yu Steel Company, predicted that the stimulus plan will provide momentum and boost the international steel price. It is to be remembered that Japan's economic strategies have changed since prime minister Shinzo Abe came to power. Adopting different policies, the prime minister let the Japanese Yen devaluate over 10%, which helped revive the country's economy. Japan also diminished its steel export to meet the domestic demands.
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