Tata Motors

#1
Hi All,
I need some help on how Tata Motors might pan forward..I wanted to do an intra trade on this as the price was at 605 already nearly 5% down. I got 30 at this rate but it continued going downwards. I got another 30 shares at 591 and the avg rate was 598 for the 60 shares. I was just hoping for the share to atleast bounce back and end at 605-610 as the 52 week low was not very far and the share has already been brutalized... But it wasnt to be the case and it ended at 583. :)

I have taken delivery of the entire 60 luckily i had the money as i sold reliance communication (569) :mad: . How do you find this stock shaping up...Will it cross the 610 mark in a week or two...Or should i book the losses... Please advice...
 

Alchemist

Administrator
Staff member
#2
The next major support for Tata Motors is 530, which is much lower than today's close.

Technically, the stock is looking very weak.

If you get a bounce back tomorrow, I suggest you exit the stock.

On the upside, 600 and 630 are the major resistances.

598 would be a good exit point. (It will mean loss of brokerage).

I doubt the stock will be able to cross 600 in the near term.

Tomorrow's market opening will be important, but right now, it is difficult to predict which way the markets will open.

 
#3
Think it fundamentally. Tata have Jaguar and Land Rover now. There is some news in todays Business Standard about this...it says something like they are raising money about 7000 crores to fund the JLR project...i didn't read it, but you do read it..it may provide some insights.

Tata Motors is the largest truck and heavy vehicles manufacturing company and it is 3rd largest car manufacturing company of a country with more than 110 crore population! Do not forget this. :).
 
#4
Hi
Thank you all for your time and analysis..Today's high was 609...
But the worst part is i wasn't able to sell as i don't have the shares credited in my account...I am trading with Reliance Money...The amount has been debited for all the shares but i don't see them in my ATST projection list...Even the contract note justifies that i have bought the shares...I inquired with them, they told me they would credit them but only after T+2 days until which i cant sell...
Just hoping for some good news or i should hold on till i could book some profit.. :confused:
 

Alchemist

Administrator
Staff member
#5
Hi
Thank you all for your time and analysis..Today's high was 609...
But the worst part is i wasn't able to sell as i don't have the shares credited in my account...I am trading with Reliance Money...The amount has been debited for all the shares but i don't see them in my ATST projection list...Even the contract note justifies that i have bought the shares...I inquired with them, they told me they would credit them but only after T+2 days until which i cant sell...
Just hoping for some good news or i should hold on till i could book some profit.. :confused:
609 was a freak-trade at the time of market-opening.

The stock never really went about 589 today.

Some brokers don't allow shares to be sold until they are credited to the demat accounts.

I trade with Indiabulls.

Indiabulls doesn't have any such restrictions and allows shares to be sold, the very next day, after they are purchased.
 
#6
Tata motors

Hi Alchemist,

I bought tata motors @661. Can I average the stock if it reaches 530-540 in long term perspective(1-2 yrs).
what are the support levels at downside.
Thanks
 

Alchemist

Administrator
Staff member
#7
Hi Alchemist,

I bought tata motors @661. Can I average the stock if it reaches 530-540 in long term perspective(1-2 yrs).
what are the support levels at downside.
Thanks
I always suggest investors not to average after every 10%-20% fall.

If you are a long-term investor, I would suggest you wait till 415-420 for averaging.

The stock has very good support in the 415-420 range.

===========================================

Actually, I don't really like this stock.

In my opinion, the Jaquar-Land Rover deal will prove costly for Tata Motors.

Tata Motors has bought a loss-making venture in a near-stagnant economy. If things don't improve in UK, Tata Motors will have tough times ahead.

I still have some hope from the Nano, but there is still some time for its launch.
 

man4urheart

Well-known member
#8
I think NANO is a non profitable venture.

- Profit margin is very less on that car. It can add to volumes but to profits I doubt!

- I think they won't be able to grow for next 2 years for more than 2 -6 % as per consensus in market on their earnings!.

- The Debt to equity ratio and interest payouts towards loan also need to be watched.

- Another point worth to notice is that they have aquired pension liabilites for Jaguar employees. The pension fund is fully invested in Equity market and if there is no recovery in 2009, they will have to manage that too.
 

vasa1

Well-known member
#9
Today's papers claim that Mamata B. has called off her Singur agitation.

This may be temporary good news for the Tatas, but given her personality, anything could still happen.
 
#10
Tata Motor is one of the best company in world...

Today's papers claim that Mamata B. has called off her Singur agitation.

This may be temporary good news for the Tatas, but given her personality, anything could still happen.
It matter with which time line u are talking...

what is key in car selling???? not a single company is making much profit when they sell car... they are earning in dealership... spare and parts and service... that is what income...

if u are having a car of 3,00,000 in next 5 years, there will be around 100000 Rs maintenance cost and where they are earning 50% margins...

take example of maruti 800... that is a car with just 2% profit margins,,, but with very high numbers and parts with margins of 50% giving them profit... one back view mirror of honda accord costing 15000 Rs

swift back view mirror cost 950 rs... do u think that mirror value 950 Rs??? no not.. but there is profit...

in nano,, they are going with same concept... this car will be in large number... even if calculate one service in 3 month of 3000 rs ... yearly it will be 12000 for maintenance and parts come with different cost,...

that is where tata is looking...

second tata is going for electric car in norway... they are market leader in truck...

they are partner in japan hydro car project

they are partner in BMW water car ( originally partner jaguar and land rover)...

so if u are 5 yera time line investor u must buy this share at any price... u will get return...

what is this chart and 200 Moving avg and all is good for trader... intraday.. F & O...

but if u are real long term investor TM is one of the best auto share...
 

vasa1

Well-known member
#11
Today's papers claim that Mamata B. has called off her Singur agitation.

This may be temporary good news for the Tatas, but given her personality, anything could still happen.
As I feared, ET Online reports that all is not well.

I know there's pressure (financial and otherwise) on Tata to stay in W. Bengal but he should move out and cut his losses.
 

San Yad

Active member
#12
Can Anyone throw light on Tata motors right issue..

Is it good or bad for investors ?

Is there anything that shareholder suppose to do during right issue time or just sit back and watch ?
 

Alchemist

Administrator
Staff member
#13
Can Anyone throw light on Tata motors right issue..

Is it good or bad for investors ?

Is there anything that shareholder suppose to do during right issue time or just sit back and watch ?
You should either subscribe to the issue or sell your rights (if you can find a buyer).

Tata Motors is offering you shares at prices lower than market price.

Why don't you use the opportunity?

If you don't have spare cash, sell shares in open market and buy from rights issue at lower price.
 

San Yad

Active member
#14
You should either subscribe to the issue or sell your rights (if you can find a buyer).

Tata Motors is offering you shares at prices lower than market price.

Why don't you use the opportunity?

If you don't have spare cash, sell shares in open market and buy from rights issue at lower price.
How to subscribe to the right issue?

I do have cash in my ledger ..

Please explain how to buy if it is worth.. I also holding share of Tata motors .. that's why I asked..

I just saw this news on moneycontrol.com

There are two types of rights that are put on offer. One are the ordinary rights that are about Rs 6.4 crore shares at an issue price of about Rs 340 per share. The ratio will be 1:6 that means for every six shares held you get one additional right share. The other is Differential Voting Rights or the DVR, on which there is an offer of Rs 6.4 crore at an issue price of Rs 305 per share.

Do I get any additional share as I am the shareholder right now? 1:6 ratio?
If I apply Will i get 340 or 305 price..


Please explain how I should buy and which type ?

thanks
 
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Alchemist

Administrator
Staff member
#15
How to subscribe to the right issue?

I do have cash in my ledger ..

Please explain how to buy if it is worth.. I also holding share of Tata motors .. that's why I asked..

I just saw this news on moneycontrol.com

There are two types of rights that are put on offer. One are the ordinary rights that are about Rs 6.4 crore shares at an issue price of about Rs 340 per share. The ratio will be 1:6 that means for every six shares held you get one additional right share. The other is Differential Voting Rights or the DVR, on which there is an offer of Rs 6.4 crore at an issue price of Rs 305 per share.

Do I get any additional share as I am the shareholder right now? 1:6 ratio?
If I apply Will i get 340 or 305 price..


Please explain how I should buy and which type ?

thanks
You can buy both. Thus, for every 6 shares, you will get 1 DVR share and 1 ordinary share.

If you have 6 shares right now, after rights issue, you will have 7 shares + 1 DVR share.

The company will send you a form. You have to fill the form and send it back along with the payment.

It is a very simple form.

The issue closes on October 20th and so you should get the form by October 10th.

If you don't want to increase your exposure to the company, you should sell 2 shares in the market now and buy 2 shares from the rights issue.
 

San Yad

Active member
#16
You can buy both. Thus, for every 6 shares, you will get 1 DVR share and 1 ordinary share.

If you have 6 shares right now, after rights issue, you will have 7 shares + 1 DVR share.

The company will send you a form. You have to fill the form and send it back along with the payment.

It is a very simple form.

The issue closes on October 20th and so you should get the form by October 10th.

If you don't want to increase your exposure to the company, you should sell 2 shares in the market now and buy 2 shares from the rights issue.
Thanks for the prompt response as usual.

you mean if I buy 6 shares online right now at the existing price? then I get 7+1 DVR?

If I sell now then where i buy the right issue shares?

Are right issue share different than the existing Tata motor shares or are same?

What I do for my existing shares now... Should I sell them and buy again at the existing price? ( I am not sure how to buy the right issue shares?

Rgds
 

Alchemist

Administrator
Staff member
#17
Thanks for the prompt response as usual.

you mean if I buy 6 shares online right now at the existing price? then I get 7+1 DVR?

If I sell now then where i buy the right issue shares?

Are right issue share different than the existing Tata motor shares or are same?

What I do for my existing shares now... Should I sell them and buy again at the existing price? ( I am not sure how to buy the right issue shares?

Rgds
Tata Motors is already ex-rights.

You get nothing extra if you buy now.

See this thread on Rights Issue.
 

San Yad

Active member
#18
Tata Motors is already ex-rights.

You get nothing extra if you buy now.

See this thread on Rights Issue.
So When I should buy then?

I sell my few existing shares today and buy on 29th ( date of right offer)..?

Do I get extra shares on the on my existing shares if let say I don't touch my existing shares?

waiting for your response
 

Alchemist

Administrator
Staff member
#19
So When I should buy then?

I sell my few existing shares today and buy on 29th ( date of right offer)..?

Do I get extra shares on the on my existing shares if let say I don't touch my existing shares?

waiting for your response
Let me give an example.

Assume you already have 60 shares.

Then the company will send you a form.

If you want more shares, you have to fill the form.

If you don't want the shares, you don't fill the form.

As you have 60 shares, you can purchase a maximum of 10 ordinary shares and 10 DVR shares.

If you want those 20 shares, fill the form and send payment to the company.

For those 20 shares, you will have to pay

(340 X 10) + (305 X 10) = 3400 + 3050
=Rs 6450.

The company is not giving anything for free.

The company is only giving you new shares at a discount.

You pay Rs 6450 and get 20 shares.
 

San Yad

Active member
#20
Let me give an example.

Assume you already have 60 shares.

Then the company will send you a form.

If you want more shares, you have to fill the form.

If you don't want the shares, you don't fill the form.

As you have 60 shares, you can purchase a maximum of 10 ordinary shares and 10 DVR shares.

If you want those 20 shares, fill the form and send payment to the company.

For those 20 shares, you will have to pay

(340 X 10) + (305 X 10) = 3400 + 3050
=Rs 6450.

The company is not giving anything for free.

The company is only giving you new shares at a discount.

You pay Rs 6450 and get 20 shares.
Thanks,

What I understand that I should not touch my existing shares of Tmotor? ( Which I will get 1:6 on discount later)

I should accumulate today ( or i can do the same after right offer opens on 29th?) to get extra shares... on discount..later

Am I right?

After filling up the form, should I submit the form before 20th Oct? OR any time in October?
 
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