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.