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Tata Motors Ltd. (TTM)

PAST TOP PICK

(Top Pick Dec 22/12, Up 53.73%) A lot of people know it from the land rover connection, which has done well. They can’t produce a lot. The demographic play is what they are focused on. The infrastructure build out in India will be very predictable over the next few decades. They have a lot of people that will go through the consumption cycle. They had a big pullback last year but recently hit new highs.

WAIT

One of their strengths is the building of the commercial vehicles like buses, etc. 1.7% dividend yield. Would wait a quarter or 2 to see where the economy is going.

SELL
If you own, you are going to be underwater for a while. This is a cyclical story. When Ford (F-N) sold them Jaguar Land Rover, it was sold at $0.01. They have done extremely well with it but the stock is not sustainable at these levels. There are far better industrial stocks were using get dividends.
COMMENT
Has done an exceptional job in building value in their Jaguar and Land Rover brands. A strong performance through the 1st quarter of this year. Has come off because the purchase of luxury automobiles is something that can be put off. Has its domestic Indian market, which can be very strong. Well run and very conservative. If you are going to be in automobiles, this is the one to look at.
BUY ON WEAKNESS
Core holding. Took some profit at $27+ just for a trade as it had moved up. Very solid. #2 or #3 bus/truck producer globally.
PAST TOP PICK
(Top Pick Feb 7/11, Up 8.11%)
BUY
Cars. Have done a great job and their new models are excellent. Making lots of money but the largest part of their sales is in India where car sales were off due to high inflation and high interest rates. Good long-term buy.
DON'T BUY
(Market Call Minute.) Still too early for Indian equities. Wants to see more evidence that inflation there is under control and that short-term interest rates will cease going up.
TOP PICK
Largest vehicle manufacturer in India and globally the 3rd largest bus manufacturer and 4th largest truck manufacturer. India economy, just based on their demographics, has to grow at 6%-7%. Pays a small special dividend.
BUY
Big conglomerate that includes Tata Motors. Has had a huge correction and he has added some to accounts that can take the added risk. Earnings were quite good. India has increased interest rates, 9 months in a row, which has hurt them.
DON'T BUY
Many emerging markets corrected, but India has not. Market is overvalued across the board. This one is included in that.
PARTIAL SELL
Prospects are pretty bright over the long-term. Near term, he expects the price to stay low. Interest rates in India continue to climb, which makes it more and more difficult for stocks to do well. One of the few emerging markets that are still overvalued. A very promising 3-5 year outlook but wait until India's interest rate cycle has peaked and market returns to normal price/earnings multiples. If you own, consider taking some money off the table.
BUY
Largest car manufacturer in India. If you believe there will be more cars on the road in India in 5 years time, the tightening of interest rates by the reserve Bank of India is not great news in the short term but the underlying demographics are great.
DON'T BUY
Passive on this one. This is a call on India. Market has taken it to dizzying heights and it recently had margin squeeze. Would stay on the sidelines for a while as we are going through a risk phase on global markets currently.
HOLD
Depends on your view on the Indian car market in the next 3 to 5 years. Expects it will be much higher. Makes Tata cars and owns Jaguar Land rover. Good time to buy is after the Bank of India decides to stop raising interest rates.
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