Posts for Ticker ‘TTM’

Can a $4,000 Car Help to Cure GM? (TTM)

General Motors may be closer to getting into cars as cheap as some go-carts.   A report over the weekend in the WSJ noted that GM plans to produce one of the compact cars for $4,000.00 in Asia.  While few details are known, this follows a similar move back in early 2008.  Tata Motors (NYSE: TTM) began a sub-$3,000.00 car via the Tata Nano for close to $2,500.00, and this looks to be a continuation of that move.
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Posted on: August 17, 2009 – 11:03 am in Autos, China, Emerging Markets,

Top Analyst Upgrades and Downgrades (BCSI, CSCO, CAL, DAL, DYN, HA, MTL, SRE, LUV, TTM)

These are the top pre-market analyst upgrades and downgrades we have seen this Thursday.  There are going to be fewer and fewer research notes from now to what is most likely Tuesday morning as Friday is a holiday and Monday is being taken off by so many investment and research personnel.

  • Blue Coat Systems (BCSI) Started as Buy ar Auriga.
  • Cisco Systems (CSCO) Started as Buy at Deutsche Bank.
  • Continental Airlines (CAL) Raised to Overweight at Morgan Stanley.
  • Delta Airlines (DAL) Started as Overweight at Morgan Stanley.
  • Dynegy (DYN) Cut to Sell at Deutsche Bank.
  • Hawaiian Airlines (HA) Cut to Equal Weight at Morgan Stanley.
  • Mechel Steel (MTL) Raised to Neutral at Credit Suisse.
  • Sempra (SRE) Cut to Hold at Deutsche Bank.
  • Southwest Airlines (LUV) Cut to Underweight at Morgan Stanley.
  • Tata Motors (TTM) Raised to Buy at Deutsche Bank.

Jon C. Ogg
July 1, 2009

Posted on: July 2, 2009 – 6:31 am in Analyst Calls, , , , , , , , , ,

India Election Winners By ETF & Shares (PIN, EPI, IIF, IFN, INP, INFY, IBN, REDF, SAY, SLT, TTM, WIT)

India MapIt is rare that you see an election have this large of an impact, but the Indian stock market surged on the new election results.  The Congress Party won a decisive victory in India and this sent Indian stocks up 17% on average.  The move was so large that the Bombay Stock Exchange had to close after already seeing one halt.  This had a huge impact on stocks, which you can see reflected in the share prices in the high pre-market indications of the major ETF’s, closed-end funds, and active ADR’s listed below.

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Posted on: May 18, 2009 – 8:19 am in ADR, ETF, Emerging Markets, Index, Mutual Funds, Politics, Trading Alert, , , , , , , , , , ,

Indian ADR’s Unphased By Terror Attacks (INFY, IBN, REDF, SAY, SLT, TTM, WIT)

India_map_imageFresh attacks that appear to be targeted against foreigners in Mumbai, India have failed to thwart a market rally today even in Indian stocks.  Reports have foreigners being taken hostage at premiere hotels frequented by the wealthy and by business travelers and some 60 deaths have been reported.  Interestingly enough, this has also failed to take out the wind of the Indian ETF’s and Indian ADR’s which are actively traded here in the US.  Stock Moves in ADR’s:

  • Infosys Technologies Ltd. (NASDAQ: INFY) up 6.3% at $24.61
  • ICICI Bank (NYSE: IBN) down 2.7% at $13.26 (had been up before)
  • Rediff.com India Ltd. (NASDAQ: REDF) up 5.6% at $2.06
  • Satyam Computer Services (NYSE: SAY) up over 3% at $12.78
  • Sterlite Industries (NYSE: SLT) up 7% at $4.80
  • Tata Motors (NYSE: TTM) down 2.3% at $4.59 (was down most of day)
  • Wipro Ltd. (NYSE: WIT) up 4.3% at $7.48

We also added in an after-report list to the ETF’s and closed-end funds we track to show a broad interest as well.

Jon C. Ogg
November 26, 2008

Posted on: November 26, 2008 – 3:17 pm in ADR, Emerging Markets, , , , , , ,

Hummers and Hindu Cows? (GM, F, TTM)

Hummer_crashIf we told you General Motors (NYSE: GM) was having troubles and needs to trim bad brands (and more workers), you’d accuse us of working for for the government’s Department of Redundancy Department.  But this morning’s reports out of Reuters that Hummer may be sold to Mahindra & Mahindra in India and/or auto makers in Russia and China brings up more thoughts and questions than should even be noted.  Sure, the world is flat.  But now it is starting to look upside down.

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Posted on: July 31, 2008 – 10:42 am in Autos, , ,

The 52-Week Low Club (TTM)(RBS)

Tata Motos (TTM) Concern about company taking on financial obligationt to buy Jaguar and Rover. Falls to $13.62 from 52-week high of $21.30.

Royal Bank of Scotland (RBS) Bank cannot sell its insurance unit. Sells off to $4.55 from 52-week high of $11.50.

Favrille (FVRL) Lays off most of staff after failure of drug trial. Hits bottom at $.08 from 52-week high of $4.08.

Zvue Corp (ZVUE) Keeps dropping after bad quarter. Down to $.24 from 52-week high of $3.70.

Douglas A. McIntyre

Posted on: May 29, 2008 – 2:45 pm in HI/LOW, , , ,

ETF Launch: PowerShares India Portfolio (PIN, INFY, IBN, SAY, SLT, TTM, WIT)

We have now seen two Indian stock ETF’s successfully launch in the last few weeks.  This morning there was another ETF launch on NYSE, although you can see the February news release with the full details.  The PowerShares India Portfolio Fund Exchange Traded Fund listed under the ticker symbol "PIN" and began trading on NYSE Arca today.  This ETF is based on the Indus India Index and tracks the performance of the Indian equity markets as a whole with representation across the consumer products, information technology, health sciences, financial services, and heavy industry sectors.

According to the press release at NYSE, the following NYSE listed ADR shares are a part of the index currently included in the Indus India Index:

  • Infosys Technologies Ltd. (NASDAQ: INFY), ICICI Bank (NYSE: IBN) Satyam Computer Services (NYSE: SAY), Sterlite Industries (NYSE: SLT), Tata Motors (NYSE: TTM), Wipro Ltd. (NYSE: WIT)

As a reminder, because of percentage foreign ownership limitation rules and because of ADR conversions, many US-traded ADR’s actually trade at premiums to shares traded locally in India.  WisdomTree also recently launched an ETF that tracks Indians stocks at the local exchange level.

Jon C. Ogg
March 5, 2008

Posted on: March 5, 2008 – 12:58 pm in ETF, , , , , , ,

In Toyota’s (TM) Earnings, A Warning For Multinationals

Toyota (TM) reported a 7.5% increase in profits for the last quarter of 2007. By itself that is an achievement for any car company. The big Japanese firm did indicate that the current quarter might not be as good because of a slowing US economy.

Toyota did point to emerging markets like China and India as much of the reason behind its strong results. But, the good news ends there.

Toyota’s forecast should be a warning to the Wal-Marts (WMT), GEs (GE), and GMs (GM) of the world. A bad economy in the US may not necessarily be offset by improving results in fast-growing markets.

The hope that places like India will bail-out multinationals has two flaws. The first is that the US economy is still big enough that a slowdown here cannot be offset by sales outside America. That may change over time, but it has not changed yet

The other piece of news which may have been lost on Wall St. is that companies like Shanghai Automotive and Tata Motors (TTM) are not going to simply roll over and let big foreign companies take there markets. The current picture of corporations in emerging markets is that they are too small and too unsophisticated to stand up to a withering assault from large multinationals. That may be the conventional wisdom, but that does not make it true.

Douglas A. McIntyre

Posted on: February 5, 2008 – 5:32 am in International Markets, , , , ,

The Ultra-Lite Car From Tata (TTM): Why Not For US?

It is easy to look at Tata’s (TTM) new mini-car, which will sell for $2,500 in India, and laugh. It is smaller than the Honda (HMC) Civics which came into the US in the 1970s.

Detroit laughed at the Civic as well, laughed itself sick.

The Tata "Nano" would not meet US emissions standards, but the engineers at Ford (F) and GM (GM) can make cars that run on H20, so why not fit a tiny engine with anti-pollutant technology?

US drivers are not going to take a wee car onto the interstate, but for the millions of people who commute to work, or just drive around town, a small car would be ideal Something that might get 100 mpg.

Could Detroit make money on such a vehicle? Perhaps not. But, it could buy a modified version from Tata.

Think of the advantages. If the car gets a flat tire, the drive can just pick the vehicle up and put it in his pocket.

Douglas A. McIntyre

Posted on: January 10, 2008 – 9:10 am in Index, , , ,

Big Car Companies: A Passage To India (F)(TTM)

Now that most large global car companies have staked out positions in China, the rush in on to get market share in India. It is no wonder. The infrastructure of large roads is still in the process of being built. The country has an emerging middle class. Labor costs for auto factories are reasonable.

The market in India is clearly growing rapidly. According to the FT "more than 1.6m light vehicles and 7.8m motorbikes were sold in India last year, compared with 675,116 light vehicles and 4.2m motorbikes in 2002."

As Ford (F), Volvo, Nissan, VW, and others elbow into the market, they may not find it as attractive as they imagined.

The push into markets outside the US and Europe was less urgent when those markets were growing. The Western infrastructure to sell millions of cars per year was already in place. In a good year, the US market was worth 17 million cars and light trucks. Financing was plentiful and buyers wanted a new car every two years or so.

Companies like Ford will find that India is already crowded with its global peers and powerful local interests like Tata Motors (TTM), the leading contender to buy Jaguar and Rover.

Emerging markets may seem like good places to sell cars, but when a dozen or more companies are fighting for the same consumer, business is likely to be less brisk than imagined.

Douglas A. McIntyre

Posted on: January 10, 2008 – 6:12 am in Autos, ,

Tata (TTM) In Tatters

The credit default swaps market is turning on India’s Tata Motors (TTM). Concerns are mounting that the company will bite off more than it can chew by buying Jaguar and Rover from Ford (F). Given the billions of dollars that the US company lost running the companies, perhaps Tata cannot do any better.

According to the FT “This would be a large-scale acquisition for Tata Motors that could potentially have a negative impact on the corporate credit ratings on the company, especially if it is heavily funded by debt,” said Standard & Poors.

The fears are fair enough. Although Ford has not had the finest management team in the world as it has operated the two luxury brands, the Fords are car people. They dumped $2.1 billion into Jaguar in 2005. It has brought them nothing but grief.

Bloomberg reports that Tata may pay as much as $1.98 billion to Ford for Jag and Rover. If the India-based firm manages to bleed as much red ink over the brands as the US car company did, their best years as a company are behind them.

Douglas A. McIntyre

Posted on: January 8, 2008 – 7:25 pm in Autos, ,

The Rise Of The $2,500 Car

Tata Motors (TTM) of India is introducing its new $2,500 car. According to The New York Times "the company wants to provide four-wheel transportation for the first time to people accustomed to getting around on two, including hundreds of millions of Indians and others in the developing world."

The new vehicle is a threat to large car companies, including Ford (F) and GM (GM) for several reasons. The first is that the big car companies have run out of growth in mature markets like Japan, the US, and Europe. All that is left in these regions is a fight over market share and that battle is expensive. It involves bringing out new models on a regular basis and price cutting through incentives.

Large auto operations are looking to the developing world including India and China for most of their growth over the next decade. Extremely inexpensive vehicles from local companies may compromise the ability of outside companies like GM and Toyota to pick up customers.

As odd as it may seem, the $2,500 car is a threat to car companies with big market share in places like the US. To make the vehicle viable for a developed market will involve better emissions technology and amenities like a radio. That makes a car which retails for under $5,000 in the developed world a real possibility. If gas moves above $4, there is a segment of the buying public that may have an interest. The margins on a product like this are likely to be low. It is not even clear that a company like GM, which still has a relatively high cost base, could even build one and make a profit.

A $2,500 car in the US? Coupled with $4 gas? Where does the line start to sign up?

Douglas A. McIntyre

Posted on: January 8, 2008 – 5:50 am in Autos, , , ,

Tata-Ford, Will They Kill Jaguar & Rover Brands? (F, TTM)

If you have followed the US auto industry you will know about the trials and tribulations of the US auto brands, the US autos themselves, the workers, and the plants and cities they operate in.  The Big Three are sizing down to operate on a leaner and more favorable employment environment with the unions.  Ford (NYSE: F) has been in the process of looking for a buyer for its Jaguar and its Rover units, and Tata Motors (NYSE: TTM) out of India has been labeled as the front runner for some time.  Multiple reports today put Tata in the catbird seat.

But there is something that Tata must consider.  Will it keep the same standards and the the same sort of companies behind the Rover brand and behind the Jaguar brand?  Rovers are premium SUV’s up to super-premium SUV’s.  Jaguar is a high-end luxury brand auto.  Neither one of these brands just has a ring of "Made in India" as a desired trait by the auto buyers who own these brands.  More importantly, it might be a real change in the brands in the coming years. 

Luxury car and SUV buyers haven’t migrated over to a new desire to have "Made in India" stamped on their car.  The truth is that the cars won’t be made in India, but that doesn’t mean there won’t be any perceived brand dilution.  Neiman Marcus isn’t going to start selling Old Navy clothes.  LVMH probably isn’t interested in selling Keystone beer or MD 20/20 wine.  You can see the Tata line of cars here to see what we are talking about.

We don’t know if Tata wants to use these European brand factories as a base to produce more Tata-esque cars or if it wants to keep the operations the same.  There are still more questions than answers, but luxury and more high-end car buyers might be thinking twice about buying a Jaguar or a Rover if they perceive a "Made in India" stigma.  Luxury buyers often don’t want to cut corners to save cash, and Tata needs to consider this.

We have previously pondered about Tata being a longer-term threat to U.S. auto makers, and perhaps that may be true sooner rather than later.

Jon C. Ogg
January 3, 2008

Posted on: January 3, 2008 – 4:22 pm in Autos, ,

Financial Market Reactions On Bhutto Assassination (INP, IFN, IIF, MINDX, IBN, TTM)

It is unfortunate to have to analyze tragic international or domestic terrorism news from a financial angle on horrible news such as the murder of a foreign leader or a challenger for that leadership ahead of an election.  Pakistan opposition leader Benazir Bhutto was assassinated Thursday in a suicide attack at a campaign rally that also killed killed more 20 others (reports still vary).  The news of her death was reported after the Pakistan markets were closed. 

Investors are looking to see how far down the Karachi Stock Exchange will drop and one of the best proxies as to see how this will affect the Pakistani stocks is to look at the closest markets.  India is the closest and most tied (good and bad) to Pakistan, and the worries that this could create additional instability in the region has the ETF and the Indian funds that trade in the U.S. down considerably:

  • The major ETF that tracks India is the iPath MSCI India Index ETN (NYSE: INP), and it is trading down some 5% at $96.10 today.  Its 52-week trading range is $46.13 to $110.09.
  • There are two closed-end funds that track the performance of Indian stocks. India Fund, Inc. (NYSE: IFN) is also down some 5.1% at $59.40 today, and its 52-week trading range is $35.51 to $71.54.  The second is less actively traded, but the Morgan Stanley India Investment Fund, Inc. (NYSE: IIF) is down some 6% at $50.75, and its 52-week trading range is $38.29 to $66.56.
  • One open-ended mutual fund that we will not know how that trades really until tomorrow after we have a chance to see how those trade is the Matthews India Fund (MINDX).  These only trade at N.A.V. at the end of each day and these traded at $24.29 yesterday.  This fund started out 2007 at $15.62, so it is also up considerably.
  • A couple of the more liquid stocks that trade as ADR’s in the U.S. are ICICI Bank Ltd. (NYSE: IBN) and Tata Motors Ltd. (NYSE: TTM), and both are down close to 5% today.

This is potentially a very large political and geopolitical event that could end up with much greater repercussions than a mere 3%or 5% move.  The hardest part of interpreting these price reactions is that Wall Street is staffed with a skeleton crew this week and part of next week.  These are the go to stock and fund names to track the financial market reactions to the situation.

Jon C. Ogg
December 27, 2007

Posted on: December 27, 2007 – 12:08 pm in ADR, ETF, Mutual Funds, , , , , , , , , ,

Cramer’s Stock Trades For Busting The Unions (GM, F, AXL, TTM)

On tonight’s MAD MONEY on CNBC, Jim Cramer said he believes that the market is going to go higher and is on its way to his 14,548 DJIA target, give or take a couple hundred points.  Cramer believes that Union-busting is taking place after the UAW gave in against General Motors recently.

Cramer wants to see how to profit off of the declining unions in business.  Ford (NYSE:F) is where Cramer thinks the unions will lose out in favor of business next, and they are even more leveraged to a change in pay scales.  If GM got a great deal, he thinks that Ford can get a great deal too.  Cramer thinks that since Ford is lower than when the GM-UAW deal was announced that you can buy this stock since they will all have far lower medical insurance and benefit costs.  Cramer also noted that Mulully took on the Boeing unions before and won.  This could make the Rover, Volvo, and Jaguar units jump to massively higher sales prices.  Shares of Ford rose 2.4% in after-hours trading after a 3% drop today.

American Axle & Manufacturing (NYSE:AXL) should see the same sort of win that GM saw since its UAW contract comes up for renewal in early 2008.  This one may benefit even more than GM and could see major gains as a result of new labor pacts.  This one only has a $1.35 Billion market cap and Cramer thinks it could see significant earnings upside in 2008.

In a call-in, Cramer said he cannot recommend Tata Motors (NYSE:TTM) ADR’s since it has run 30%, and he definitely does not want to see Tata be the acquirer of Rover and/or Jaguar from Ford.  You can bet that luxury car buyers don’t want that either.

Other significant previous Cramer calls worth noting:

Jon C. Ogg
October 1, 2007

Posted on: October 1, 2007 – 5:33 pm in Autos, Cramer, Labor & Unions, , , , , ,

Tata Motors: A Longer-Term Threat to US Autos?

What would happen if the US auto industry had to compete against India in its neverending turf war? The long and hard truth is that for now the US market is probably safe as far as competition from India, but Tata Motors is growing in India and throughout Asia and ultimately could make more of a dent in world auto sales.  It also sells in Australia, Europe, and the Middle East.

Tata Motors Ltd. (TTM-NYSE/ADR) reported earnings in India.  Its profit was roughly $140 million after $2 Billion in revenues on a conversion basis from Rupees to dollars after the company sold north of 172,000 units.  The part of the business that is even more impressive is the buses and trucks unit that grew more than 20%, compared to 14% growth in passenger cars and jeeps.  Their units were also broken down as 87,467 commercial units and 70,248 passenger vehicles.

The good news is that US auto makers don’t have to compete with the company locally here in the US, although they do overseas.  Tata sells cars, trucks and buses in India, Asia, Australia, the Middle East and some in Europe.  Many of the cars and vehicles just don’t look like they would sell in the US, but some would.  You can see how the autos just look and feel different at the company product offerings on their web site.

The $2 Billion equivalent in sales is small in comparison to an average $50 Billion in quarterly sales out of General Motors (GM-NYSE), $40 Billion out of Ford (F-NYSE), or even $20+ Billion out of Honda (HMC-NYSE).  This isn’t exactly a threat to the US auto industry, not yet anyway.  But look out a decade when the rest of the emerging markets are growing and the US auto industry is potentially still facing many of the same issues as today.  The fact that Tata Motors is part of the larger group of companies, the Tata Group, makes this even more probable since the rest of the group is in steel, chemicals, IT, hotels, and financial services.

Jon C. Ogg
May 18, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: May 18, 2007 – 8:14 am in Autos, , , ,