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Viewing report
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Alpha India EE - The Tata Motors Case
Orpheus Capitals, May 2011, Pages: 7
The Tata Motors case
When we are looking to filter out the best stocks to sell (or buy), the idea of diversification also comes into the equation. Components of the same sector usually show similar structures, this is why our aim is to diversify using the best or worst performers from separate sectors in order to further reduce risk. Today we continue the analysis of our Early Economic shorts list with components of the Indian Auto sector. Tata Motors, Bajaj Auto and M&M are all on our list of best shorts. We plotted the relative Jisekis between the stocks and their sector index, BSEAUTO and also compared the stocks pair by pair. Each structure indicated that Tata Motors has been outperforming not only BSEAUTO, but also Bajaj Auto and M&M for a few months now (slide 1). The relative performance between Tata Motors and BSEAUTO suggests that the stock is ready to underperform its sector index (slide 3).
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