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No. of Recommendations: 2

So far, 2012 has been great for Tata Motor’s [TTM] investors. As I see it now, following a nice run up and a bit of a plateau, TTM has had a little more accumulation since mid April. Volume, that has averaged between 350-400k shares per hour, is now diminishing. The combination of such indicators seems to imply expectations for the FY 2011-12 report are running high—share holders are settling, waiting for the numbers.

This past year TTM has broken some monthly sales records; and, every auto maker, and their brother, are making serious plans to assault India’s growing middle-class with transportation options. Even the Nano, TTM’s low-cost, entry level vehicle, has seen improved sales. I believe I read recently that 70% of Indian auto sales are from the “more affordable” brands. That could give TTM a post-position edge as India’s infrastructure continues to develop and improve.

It’ll be interesting to see if the “sell in May and walk away” trading mantra has any noticeable effect; personally, I don’t subscribe to the theory, but it’s still out there.

Looking forward to the 24 May report....


Position: Still long & holding...
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