Indian Government Expects to Spend $22 Billion on Roads and Highways This Fiscal Year

$44 Billion to Be Spent Over Two Years

BETHESDA, MD--(Marketwire - 08/04/09) - India Globalization Capital, Inc. (AMEX:IGC - News), a company competing in the rapidly growing materials and infrastructure industry in India, today announced that the Indian Minister of Roads, Transports, and Highways, Kamal Nath, when speaking at an industry seminar on Friday, July 31st, 2009, commented that the Indian Government is going to spend about $44 billion, $22 billion this year and $22 billion next year, on roads and other critical infrastructure projects, with the goal of building 20 kilometers of road per day each fiscal year. "This year we will build more road kilometers than what was done between 1999 and 2004," said Kamal Nath. "The target of building 7,000 kilometers [of] road this year alone will make a visible difference in infrastructure," Minister Nath continued.

"The comments made by Minister Nath reflect the enormity of the breadth and depth, as well as the political will, of the new Indian government to aggressively address its critical infrastructure needs through major build-out programs and spending plans. In addition, it is clear that India Globalization Capital's market positioning within India's infrastructure and materials sectors could not be better. Taking advantage of these government initiatives and spending programs is one of our critical strategic goals for the foreseeable future, and something we expect to contribute to the top and bottom lines of our balance sheet," said Ram Mukunda, Chief Executive Officer of India Globalization Capital, Incorporated.

About:

India Globalization Capital, Inc. is a construction and materials company operating in India, which builds roads, bridges and highways, and provides materials to the infrastructure industry in India and China.

Nice volume and block trades; refresh seller @ 1.69 gone

GRVY 130k block @1.69...this could release the hounds.

re: GRVY

Can't pass it up in this trading environment. Strong on so many levels. Count me in...nice DD michael and hank.

stan, re: LGDI

i have looked into it several times over the past 2 years, and each time i can't find a good reason to NOT buy it, yet i'm always glad i didn't because the share price seems to endlessly drift down.

but it's getting to that level where the risk/reward just might be worth taking a crack at. i'll refresh my DD and let u know if i pick any up.

late note: all those form-4's on the buy-side...interesting!

She's trying to get to $10!

IGC breaking out a bit today; hoping that this becomes the defacto Iron-Ore-to-China play, with the Indian Infrastructure business being the wildcard. Fairly low O/S (<11M), and considering the blocks on Friday, it looks like the float is being absorbed.

Huge trades at and after the close

Showing 225k block at the close, and 675k after the close. There has been some overhang, and this could be why. Big block trades like this often lift the ceiling, so we'll see what next week brings!

SKBI - nice analyst presentation distributed to analysts today.

http://sec.gov/Archives/edgar/data/1076939/000114420409039779/v156069_ex99-1.htm

8K posted today indicates analyst presentation uploaded...very interesting and compelling.

http://sec.gov/Archives/edgar/data/1076939/000114420409039779/v156069_ex99-1.htm

SKBI - 8K indicates analyst presentation uploaded...very interesting and compelling.

http://sec.gov/Archives/edgar/data/1076939/000114420409039779/v156069_ex99-1.htm

SKBI - quite the nice day on strong volume. Getting a boost from the overall china stock sentiment plus its focus on animal pharma and flu products.

SKBI moving nicely today; some good-size bids showing up on the way up.

Moving nicely on volume. Modest breakout

No, this is a legit newsletter. In fact he usually doesn't pick smallfries like TXIC.

i'm actually a member of that and for some reason i must have missed the TXIC mention. not complaining though!

ding!

re: CWBYF - I'm now bidding the .01; nice pickup! You're right though, cheap and quiet like crickets.

nsomnyiak's CEMJQ is going gangbusters...nice call sir!

re: XING - I like the move! Exit the low-margin, highly competitive portion of their phone biz, and get into something that has clear demand for the next XXX years. They could garner a completely different multiple if become considered a mining/coal play.

Sounds like a Yuan-for-Polluters program, like our cash-for-clunkers!! lol

IGC - Indian Iron Ore ==> could become the defacto China-destined iron-ore microcap. Nice PR today describing the macro conditions for iron-ore, including IGC-specific ramifications. In addition, the company recently announced two iron ore contracts destined for China, amounting to just under $5M.

Could be a fun ride, considering this angle in addition to their bullish Indian Infrastructure business...

-----

Indian Iron Ore Prices Soar as Problems With Chinese and Australian Iron Ore Deliveries Persist

India, Next Largest Ore Supplier to China, Set to Gain Pricing Push


BETHESDA, MD--(Marketwire - 07/27/09) - India Globalization Capital, Inc. (AMEX:IGC - News), a company competing in the rapidly growing materials and infrastructure industry in India, today announced Indian iron ore prices are being driven higher by trade problems between China and Australia, China's largest supplier of iron ore.

Reuters reported last Thursday that exporters and miners of Indian iron ore are receiving upwards of $100 per ton for their ore amid some of the strongest inquiries from China seen to date, a problem made heavier by worsening trade talks with Australia and the looming monsoon season in India.

In the same report, a Shanghai-based iron ore trader was quoted as saying, "Indian ore prices have risen very quickly in China now. Demand is always there as you know the output of steel mills is rising, while prices have been boosted..."

"India exports about 100 million tons of iron ore annually to Chinese interests around the world. The recent rise in Indian Iron Ore prices is expected to augment the value of our coming iron ore shipments to China. As the trade problems between China and Australia deepen, and as the monsoon season continues its effects, we expect Indian iron ore prices to stay elevated," said Ram Mukunda, Chief Executive Officer of India Globalization Capital.

The global importance of iron ore cannot be overstated. It is the most widely used of all metals, comprising 95% of the metal tonnage produced worldwide. Global use of finished steel products has increased markedly since 2005. The requirement for iron ore is particularly large in China where steel demand had risen by more than 13% in recent years. Worldwide, crude steel production climbed from 1,251 mT in 2006 to 1,344 mT in 2007, an increase of 7.5%, and has followed a similar trajectory in 2009, with China accounting for 46% of world iron ore imports.

Iron ore is rock and minerals from which metallic iron can be extracted. The primary form used in industry today is hematite and is often the principle raw material used to make "pig iron," a material critical to the production of industrial steel.

---
fyi - IGC was ex-items profitable for FY2009.

Iron Ore news today regarding elevated prices...very nice.
Recall that IGC has recently announced two contracts from China to ship iron ore, valued at just under $5.0M aggregate.
---

Indian Iron Ore Prices Soar as Problems With Chinese and Australian Iron Ore Deliveries Persist

India, Next Largest Ore Supplier to China, Set to Gain Pricing Push


BETHESDA, MD--(Marketwire - 07/27/09) - India Globalization Capital, Inc. (AMEX:IGC - News), a company competing in the rapidly growing materials and infrastructure industry in India, today announced Indian iron ore prices are being driven higher by trade problems between China and Australia, China's largest supplier of iron ore.

Reuters reported last Thursday that exporters and miners of Indian iron ore are receiving upwards of $100 per ton for their ore amid some of the strongest inquiries from China seen to date, a problem made heavier by worsening trade talks with Australia and the looming monsoon season in India.

In the same report, a Shanghai-based iron ore trader was quoted as saying, "Indian ore prices have risen very quickly in China now. Demand is always there as you know the output of steel mills is rising, while prices have been boosted..."

"India exports about 100 million tons of iron ore annually to Chinese interests around the world. The recent rise in Indian Iron Ore prices is expected to augment the value of our coming iron ore shipments to China. As the trade problems between China and Australia deepen, and as the monsoon season continues its effects, we expect Indian iron ore prices to stay elevated," said Ram Mukunda, Chief Executive Officer of India Globalization Capital.

The global importance of iron ore cannot be overstated. It is the most widely used of all metals, comprising 95% of the metal tonnage produced worldwide. Global use of finished steel products has increased markedly since 2005. The requirement for iron ore is particularly large in China where steel demand had risen by more than 13% in recent years. Worldwide, crude steel production climbed from 1,251 mT in 2006 to 1,344 mT in 2007, an increase of 7.5%, and has followed a similar trajectory in 2009, with China accounting for 46% of world iron ore imports.

Iron ore is rock and minerals from which metallic iron can be extracted. The primary form used in industry today is hematite and is often the principle raw material used to make "pig iron," a material critical to the production of industrial steel.

If we take the 11/08 estimates for fiscal 2010, which admittedly is a bit of a stretch considering the company's propensity for revising estimates, 6% on $45M is about .27/share EPS. I would be ok w/ half that.

"India Globalization Capital, Inc. lowered its fiscal 2009 revenue outlook to a range of $35-$40 million. It also lowered fiscal 2010 outlook and expects revenue to a range of $45-$55 million with net earnings in the 6%-8% range. The Company cited illiquidity in the U.S. and the Indian credit markets as the primary reason for negative outlook."

It must be tough for companies like IGC, or any infrastructure company really, to provide guidance when so much of their guidance could be dependent on a few large contracts. Clearly, something like that was the reason behind their change in guidance. But in any case the best information we have now is in the conference call, worth a listen (it's ~ .5 hrs)

http://finance.yahoo.com/news/Indian-Globalization-Capital-iw-1566508182.html?x=0&.v=2

I figure for a buck & change, this company has multi-bagger written all over it.

glen,
based on some of your posts and the stocks you seem to like, you might get some benefit out of this board:

Value Microcaps (VMC):
http://investorshub.advfn.com/boards/board.aspx?board_id=3251

...and this India/China stock is my current fave idea: http://investorshub.advfn.com/boards/board.aspx?board_id=15751


For the VMC board, it's a premium-only board, so you'll have to consider that.

Best of luck to you.

Nice iron ore mention in a Chinese "economic indicators" newsletter:

China is stockpiling commodities such as copper and iron ore as part of a reallocation of its sovereign wealth
amid concern that the value of its dollar assets may decline, according to the Royal Bank of Canada.

Great job Wade...and way to apply the lesson learned!

I'm waiting til the end of year before calculating my % gain. No reason to figure it out until then, as it could affect the way I trade otherwise.

I tend to agree with you, but just when I do, it drops a dime on about 8k shares. So I rush to put in and order and usually get a partial fills.

07/24/2009 10:57:09 Bought 2500 IGC @ 1.06 -2,657.00 ---

07/24/2009 11:54:05 Bought 500 IGC @ 1.09 -552.00 ---

07/24/2009 12:15:36 Bought 277 IGC @ 1.09 -301.93 ---

07/24/2009 13:08:52 Bought 100 IGC @ 1.09 -109.00 ---

07/24/2009 13:08:52 Bought 100 IGC @ 1.09 -109.00

tothe - nice info; thanks.
I added more today at 1.06 & 1.09; looking for more sub-1.10

tothe, re: iron ore shipping to China

One stock to keep an eye on isn't technically a Chinese stock (symbol=IGC), but they have had two recent PRs about shipping iron ore to China. Management is emphasizing this aspect of IGC's overall business, per their conference call

yes HIHO nice; similarly-flavored BNSO has get to get any momentum.

Don't get me wrong, still long some TXICW, but avg cost so low I had to take some profits along the way. IGC down today so I'm buying more!

I have flowed some of my TXICW profits into IGC...love the story there. But you're right - TXIC to $10 may be in the cards.

TXIC/SKBI nice lil' breakouts today

nice pickup db7! i smell $7 today, but it's not coming easily. refresh sellers every nickel on the way up.

Skystar to Ring NASDAQ Opening Bell on July 22

Skystar Bio-Pharmaceutical Company (NASDAQ:SKBI - News) ("Skystar" or the "Company"), a China-based producer and distributor of veterinary medicines, vaccines, micro-organisms and feed additives, today announced that the Company's Chairman and CEO Weibing Lu, CFO Bennet P. Tchaikovsky and Director R. Scott Cramer, will ring the opening bell at the NASDAQ Capital Market on Wednesday, July 22, 2009, in New York City. Skystar's common stock began trading on the NASDAQ on June 26, 2009.

The opening bell ceremony will take place beginning at 9:20 a.m. Eastern Time at the NASDAQ MarketSite in New York's Times Square and will be broadcast live on the seven-story NASDAQ tower.

"We are honored to participate in the NASDAQ opening bell ceremony," said Mr. Lu. "We believe that our recent listing on NASDAQ will expand our exposure to the U.S. investment community and further enhance shareholder value. Skystar is a leading supplier in the rapidly growing veterinary health- and medical-care industry in China. For fiscal 2009, Skystar increased revenues by 42% to $25.6 million, and increased net income by 73% to $5.6 million. We are anticipating adding approximately 40 new products to our portfolio this year and expanding our manufacturing capabilities, which we expect can add $16.7 million in revenues and improve gross margins by up to $11.7 million by 2010."

IGC $2.1M China iron ore contract:
http://finance.yahoo.com/news/India-Globalization-Capital-iw-3730607887.html?x=0&.v=1

India Globalization Capital Awarded $2.1 Million Chinese Iron Ore Contract

Second Chinese Iron Ore Contract Solidifies Strategic Goals in Materials Segment


India Globalization Capital, Inc. (AMEX:IGC - News), a company competing in the rapidly growing materials and infrastructure industry in India, today announced it has been awarded a contract worth around $2.1 million to supply a Chinese company with iron ore. This contract is the second Chinese order and is for approximately 30,000 metric tons (mT) of iron ore with a ferrous content of 59%.

"We will fill this order out of the Kandla port on the west coast of India. We continue to execute our strategy, build our brand, and win contracts as we build-out the materials segment of our business. We are well positioned to take advantage of the growth in the materials marketplace and we continue to expect our materials business to meaningfully complement the company's operations on a going forward basis," said Ram Mukunda, Chief Executive Officer of India Globalization Capital, Inc.

China is the largest importer of iron ore, importing about 46% of the world's supply each year. Japan, the second largest importer of iron ore, imports only about 15%, followed by South Korea, Germany, and France. In 2008 approximately 850 million tons totaling between $75 billion and $80 billion were shipped around the world.

Iron ore is rock and minerals from which metallic iron is extracted. The primary form used in industry today is hematite, and is often the principal raw material used to make "pig iron," a material critical to the production of industrial steel.

About:

India Globalization Capital is a construction and materials company operating in India, which builds roads, bridges and highways, and provides materials to the infrastructure industry in India and China.

India Globalization Capital Awarded $2.1 Million Chinese Iron Ore Contract

Second Chinese Iron Ore Contract Solidifies Strategic Goals in Materials Segment


India Globalization Capital, Inc. (AMEX:IGC - News), a company competing in the rapidly growing materials and infrastructure industry in India, today announced it has been awarded a contract worth around $2.1 million to supply a Chinese company with iron ore. This contract is the second Chinese order and is for approximately 30,000 metric tons (mT) of iron ore with a ferrous content of 59%.

"We will fill this order out of the Kandla port on the west coast of India. We continue to execute our strategy, build our brand, and win contracts as we build-out the materials segment of our business. We are well positioned to take advantage of the growth in the materials marketplace and we continue to expect our materials business to meaningfully complement the company's operations on a going forward basis," said Ram Mukunda, Chief Executive Officer of India Globalization Capital, Inc.

China is the largest importer of iron ore, importing about 46% of the world's supply each year. Japan, the second largest importer of iron ore, imports only about 15%, followed by South Korea, Germany, and France. In 2008 approximately 850 million tons totaling between $75 billion and $80 billion were shipped around the world.

Iron ore is rock and minerals from which metallic iron is extracted. The primary form used in industry today is hematite, and is often the principal raw material used to make "pig iron," a material critical to the production of industrial steel.

About:

India Globalization Capital is a construction and materials company operating in India, which builds roads, bridges and highways, and provides materials to the infrastructure industry in India and China.

OT: China--> This should help a lot of our VMC'ers

Investment bank Morgan Stanley has raised its 2009 GDP growth rate forecast for China to 9 percent from 7 percent earlier. It has also upped its forecast for 2010 to 10 percent from the 8 percent previously, according to a recent report by Morgan Stanley economist Qing Wang.

http://www.chinadaily.com.cn/bizchina/2009-07/21/content_8452381.htm