Sirjii, Anant bhai, Seniors and friends...
Both Sirjii's and Anant's bhai's Triggers have given a BUY signal on SesaGoa... Which an approximate target of 450/-.
This is the news i found yesterday.......
"The government has reintroduced a 5% export tax on iron ore fines, and has raised the duty on iron ore lumps to 10% from 5%. Last year, the government had withdrawn the duties on iron ore fines on account of the sharp dip in
iron ore prices; however, it had retained a 5% levy on lumps."
Doesn't it mean that Sesa Goa should be sold at this point as the increase in the export tax on Iron Ores degrade the stock value?
All answers will be appreciated...
Thanks
Well, my sense says it can be taken both ways...demand had dipped so duties were reduced and now that duties are going to be increased, that also indicates the possible demand for iron ore- more sales- more revenues- and finally better bottomline/topline..go figure, kind of thing...more so, commodity cycle is going good with even better forecast in coming year...check out prices of steel in different places...increasing demand for it in China..so where does that leave demand for iron ore? better..i Guess...
other factors..biggest iron ore player NMDC's FPO...re-rating of stock../ new highs for Sesa Goa..so all in all..even if some downside is there..it will be more like a technical correction..and you could see this morning..it touched 381 and went above 400...
A good market is pretty forgetful about small bad news and a bad market even discounts big good news even before it flashes on screen...
every other day, we listen about some tax notice to companies like HDIL and likes..nothing much happens..even today, all the pharma stocks took a hit...because of the tax issues and litigation..but which pharma company is not into some sort of litigation at some point of time? and we all know pharma scrips have performed like anything but defensives! so..it was seeking an excuse..got that..2-3 days..one gets it..accumulates it..and....the obvious follows...
having blabbered all that...well...thats just me..!