• 2 minutes Oil prices going down
  • 11 minutes China & India in talks to form anti-OPEC
  • 16 minutes When will oil demand start declining due to EVs?
  • 1 min Oil prices going down
  • 15 hours We Need A Lasting Solution To The Lies Told By Big Oil and API
  • 16 hours Another WTH? Example of Cheap Renewables
  • 3 days Bullish and bearish outlook for oil
  • 3 hours What If Canada Had Wind and Not Oilsands?
  • 2 days Trump Hits China With Tariffs On $50 Billion Of Goods
  • 2 days When will oil demand start declining due to EVs?
  • 15 hours The Wonderful U.S. Oil Trade Deficit with Canada
  • 2 days Russia's Rosneft 'Comfortable' With $70-$80 Oil Ahead of OPEC Talks
  • 3 days Rolls Royce shedding 4,600 jobs
  • 8 hours China & India in talks to form anti-OPEC
  • 3 hours Australia mulls LNG import
  • 8 hours No LNG Pipelines? Let the Trucks Roll In
  • 14 hours The Permian Mystery
  • 1 day Gazprom Exports to EU Hit Record
  • 3 days OPEC soap opera daily update
Alt Text

Clean Energy Stocks Outperform Oil And Gas

Green energy stocks saw tremendous…

Alt Text

How To Spot Top E&P Stocks In 2018

As sentiment in oil markets…

Alt Text

The Best Places In The World To Mine Bitcoin

As Chinese bitcoin miners face…

Mad Hedge Fund Trader

Mad Hedge Fund Trader

John Thomas, The Mad Hedge Fund Trader is one of today's most successful Hedge Fund Managers and a 40 year veteran of the financial markets.…

More Info

Trending Discussions

Take a Look at Tata Motors

Every day, when considering what to write about, I tell myself that I’m not singing enough praises about India. Then events demand that a topic more urgent be thrust upon these august pages. This is a major omission on my part, as friends, like Morgan Stanley Asia’s chairman Stephen Roach, believe that India will far and away outperform China over the coming decade.

So today I’m going to discuss Tata Motors (TTM), one of the world’s largest manufacturers of cars and trucks. Two years ago TTM made headlines when it bought Ford Motor’s troubled Jaguar Land Rover unit for a song, and then smartly turned it around by moving some production to India.
But the real buzz around Tata has been about the Nano, at $2,000 the world’s cheapest car (click here for its site). A year’s production of 250,000 blew out the door in months, and construction of a second plant that can build an annual 350,000 units is underway. The company plans to upgrade it to meet US safety standards, and then offer it for sale here for $7,000, still a bargain. Do you think Toyota (TM) and GM might be worried?

The company has brought in an average 25%/year revenue growth rate for the past five years. That is a blistering rate for such a large company, with a market capitalization of $12.6 billion, which makes it one of the largest firms in the emerging markets outside of China. 2010 Q2 profits jumped to $433 million, versus a year earlier loss of $69 million. That has enabled the stock to punch through to a new all-time high.

You would think that with such a terrific story behind it, valuations would be through the moon. They’re not. Today TTM can be bought at a PE multiple of 12 times, and some forecasts put it as low as 8 times with a PEG ratio of only 0.40. Valuations tend to be generally cheap on the sub-continent because, well, it’s undiscovered. I would say buy on the next melt down, but you’re probably not going to get one. So buy on the next dip instead.

Tata Motors

India Bombay Stock Exchange

By. Mad Hedge Fund Trader




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News