2007-03-20 08:09:33 · 8 answers · asked by Kushaldas_mca 1 in Business & Finance ➔ Investing
yes... TISCo is a gud stk.. but only for LONG TERM.. buy and forget... if u want to make a quick gains dont go in for commodity stk like TISCo..
2007-03-20 17:11:06 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Tisco has just bought Corus for $12 billion and has not yet completely structured the deal - you don't yet know how much more debt the company will take, or if they will release more shares to the market to fund the purchase.
Ratan Tata has said that there will not be an increase of debt of equity on Tata Steel's books, but if that is so that means they will use a different investment vehicle, and if Tisco does not take the risk, it will not be given the reward also (meaning there is not much benefit to Tata Steel)
On the other hand, if Tata Steel is to really benefit from the deal, it will have to issue FCCBs (Foreign Currency Convertible Debentures) which will increase the size of the company and the number of shares. But there will not be a huge earnings impact - remember that Corus is not as profitable (per tonne) as Tisco, and therefore for a few years at least, there will be a negative impact on earnings per share. Secondly there will be employee issues, outsourcing issues etc. during the integration phase of the two companies. Finally, steel prices are on a downturn and the government wants to control steel prices to reign in inflation.
All these mean that in the short term, earnings per share is going to be down for Tisco.
If earnings drop, then the share price will drop as well.
I predict that the integration will take around 18 months. I think the share price will drop to lower levels later this year - perhaps after three-four quarters of the integration is over it will be at its lowest, because earnings hit would be maximum by then.
That will be a better time to buy, I think. Not now. I like the stock though, and own it for over 10 years. I am not selling because I don't need the money for another five years at least, but if you are buying I would recommend that you wait till the earnings impact is more clear.
2007-03-21 07:35:13 · answer #2 · answered by Deepak Shenoy 2 · 0⤊ 0⤋
TISCO is in the Sensex 30 for a reason - because it stands as a barometer for the Indian economy. Over the long term any stock in the Sensex, barring exceptions, will do well. In the case of TISCO, a beaten down stock, the performance should be even better. This stock should certainly double in a 3 to 5 year time frame from current price levels. I would recommend a STRONG BUY.
2007-03-22 07:56:00 · answer #3 · answered by justinageneralway 3 · 0⤊ 0⤋
Yes. I would.
Tata Steel will do well with the 'purchase of market share' that they have done with Corus. Everyone says that they bought it at too high a price. Does'nt Tata know that. If they did not buy it, someone else would have done so.
Tata is not dumb, and the market correction is a great time to incrementally buy shares. Buy 50+50+50+50+50 at various times (days) if you are trying to buy 250 shares total.
KKP
2007-03-23 01:06:18 · answer #4 · answered by KKP_Investor 3 · 0⤊ 0⤋
Steel sector like sugar should be avoided in 2007
2007-03-23 14:46:55 · answer #5 · answered by Raghav 4 · 0⤊ 0⤋
hi
i m fromstocktrade and i m trader so i tell u one thing that if u wann to invest at this rate tatasteel will give u nice return
but if u wann to trade so plz not good for ttrading
coz tatasteel is not for trading its high low is veruvery range bound so for long time its will give u nice return
u can contect me at my id satyen2073 for fre talk about stock market
thx
2007-03-21 04:02:25 · answer #6 · answered by satyen2073 2 · 0⤊ 0⤋
No
wait 4 buy signal on aptistock
more on my blog
2007-03-21 00:33:53 · answer #7 · answered by dinu_pawar 5 · 0⤊ 0⤋
tisco can be goo for long term, i will advice to buy bharti airtel or banking sector share!
2007-03-21 07:35:47 · answer #8 · answered by Sidd 7 · 0⤊ 0⤋