Get to know TATA

By TheWild1 at 16 January, 2008, 8:00 am, Categories : Stock Recommendations

I am going to be implementing a new program on TheWildInvestor called “Get to know” where every Wednesday I talk about a new company trading in the stock market. We’ll see how long this last. They won’t necessarily be unheard of, but they will be something I have been watching.

General Feel

I have recently been trying to find stocks that will work in this market. I am not necessarily looking for quick cash, but something that will get me return in this lifetime. Fresh off a trip to India I have become interested in the Indian power house that is, Tata Motors (TTM).

What I like about them the most is that it is foreign company, with majority of its exposure in India, meaning they aren’t affected as much by what goes on with the U.S. While on vacation, I noticed that India was covered with the construction of new buildings and better infrastructure. In Mumbai alone they were in the process of building 3 bridges. All the trucks I saw and many of the cars were Tata. Everywhere I looked I saw Tata, and when there is a huge boom and one company is such a huge part of it, then I like that odds. They even had watches that were made by Tata.

With the release of the cheapest car and rumors circulating about Tata buying Jaquar, there is much to like here (in my opinion). At first glance, to many the new car might seem too small and unusable, but people in India like their cars small because it makes it easier to get through the heavy congestion.

Chart examination

When I look at the chart I am not sold on it alone. In fact there is a little bit of a descending pattern forming, but chart forecasting isn’t 100% accurate.

ttm_11507

Final Conclusion

I like the stock as a long-term play, but don’t expect it to see too much return. Right now it is using its 50 day moving average as support. If it bounces off that then look for it to go around 21 or so. Basically don’t get too greedy with this stock. Take what it gives you.