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Michael Michaud is the founder of Invest2Success.com (http://www.invest2success.com/) and the Invest2Success Blog (http://invest2success.blogspot.com/). He has been investing and trading in the financial markets since 1989. He founded Invest2Success.com to empower individual institutional... More
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  • Tata Communications India 0 comments
    Jan 18, 2010 7:52 AM | about stocks: TCL, MTE, NTT, DTEGY, VZ, VOD, ORAN, DCM, TI, TEF, T, BT
    The Market Week Ahead

    Earnings reports are in full swing this week and month now. Will the earnings reports keep the stock market rally moving forward? The reality of the past is that even good earnings reports lag stock equity prices. So relying on earnings report to propel stock prices is not as good a indicator as you might think. Some of the earnings reports coming in this week are General Electric, Citigroup, Goldman Sachs, Bank of America, Google, and IBM. There’s another potentially big market moving event this week. It’s the Massachusetts Senator race on Tuesday. Depending upon how that goes, it could be a plus or negative for the Obama administration, their reforms, and the financial markets.

    Global Major Economic Data Reports This Week

    Tuesday: German ZEW Survey, Bank of Canada Interest Rate Decision, New Zealand Consumer Prices

    Wednesday: Bank of England Minutes and UK Job Claims, Canada Consumer Prices

    Thursday: JPY Coincident Index, Switzerland & UK Money Supplies, USA Philadelphia Report, Canada Business Outlook.

    Friday: UK and Canada Retails Sales

    My Stock Pick this Week

    Is a short sell on a big Indian Communications company. Long term I’m totally bullish on the India markets. Right now, it’s had a big upside run, and needs some cooling off in my opinion to see if the fundamentals can keep up with the current high valuations now and going forward. This company’s PE ratio is now about 65. India is a big grower for sure going forward, but I would looking to buy into this stock at lower prices indicated below in my short sell position take profit targets. The sell-off from the 20 area at the end of October 09 has more legs I think from a technical and fundamental point of view in the short to intermediate term. I would possibly start to get interested in going long on this company if the price was south of 13 with the 8 to 10 area possibly being very good prices to go long.

    Sell Position: Tata Communications Ticker TCL

    Sell Entry: 15.76

    Stop-Loss: 16.26 or Higher

    Take Profit Areas: 15.26 to 14.26, 14.03 to 13.01, 13.01 to 12.70, 10.88 to 10.63, 8.10 to 7.91

    Tata Communications Company Profile

    Tata Communications Limited, together with its subsidiaries, provides various telecommunication services in India and internationally. The company operates in three segments: Wholesale Voice, Enterprise and Carrier Data, and Other Services. The Wholesale Voice segment provides international long distance and national long distance voice services. The Enterprise and Carrier Data segment offers corporate data transmission services, such as international private leased circuits, frame relay, Internet leased line circuits, and national private leased circuits. This segment provides IP networks and wholesale IP transit services to tier-2 ISPS, and regional carriers; and value-added services, such as content delivery networks. It also offers mobile signaling services, such as signal conversion and managed roaming services; virtual private networks and associated managed services, including multi protocol label switching; Ethernet services; Internet access; managed hosting; messaging; Internet telephony; collaboration and conferencing services; managed security services; and other professional services. The Other Services segment provides global roaming, Internet, virtual private network, data centre, and TV up-linking services. This segment offers various Internet and broadband services, such as connectivity, messaging, Internet telephony, wi-fi services, and a range of content services. The company, formerly known as Videsh Sanchar Nigam Limited, was founded in 1986 and is based in Mumbai, India. Tata Communications Limited is a part of the Tata Group.

    Click here to review and trial the Trading Software we used in determining our sell short position on TCL.

    Click the Tata Communications Stock Chart for a larger view.

    Tata Communications Stock Chart

    Disclosure: No Positions
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