TVS Logistics Services Ltd, part of $5 billion group T V Sundram Iyengar & Sons (TVS) has raised Rs 100 crore through private equity (PE) to support its expansion plan and to reach its target of Rs 1,000 crore turnover by the year 2010. It may be noted, this is the first time PE investment has been made in a TVS Group company.
Goldman Sachs, a global investment banking and securities firm, has invested Rs 100 crore for a significant minority stake to support TVS Logistics growth plans which include expansion, increasing its investment in joint ventures (JVs)and for acquisition opportunities.
Meanwhile, TVS Logistics recently taken a 50 per cent stake in Mumbai-based Greenarches and renamed the company as TVS Infrastructure. The company proposed to invest Rs 500 crore to build logistics parks by itself and through special purpose vehicles (SPV), said R Dinesh, director, TVS Logistics Services.
He added, the company already owns 20 acres of land in Pune and 10 acres in Chennai, with plans to build up land banks of around 200 acres in centres of automotive in places like Hosur, Gurgaon, Halol, Lucknow, Singur, Uttarakhand and Indore.
TVS Dynamic Global Freight Services a new company which was formed recently by TVS Logistics Services and Dynamic Freight Forwarding Service has combined the freight forwarding business of both the entities. TVS has 75 per cent in the newly formed company. The company will focus on auto and non-auto segment and is expected to reach Rs 250 crore turnover in the next three years, he added.
Suresh Krishna, CMD, Sundram Fasteners Ltd said that TVS Logistics is planning to enter finished goods transportation after forming a joint venture and through merger and acquisitions. These JVs are expected to contribute around Rs 100 crore during this fiscal. He added, TVS Logistics Services recently entered into commutation solutions for corporate staff transportation and has plans to expand its current fleet strength from 200 buses to 1,000 buses within next two years.
As on on March 31, TVS Logistics and its joint ventures turnover was around Rs 340 crore. Domestic business contributed Rs 240 crore, while its global business contributed Rs 100 crore.
Understanding Short Term Trading
Before I begin, this blog is not for intraday traders. My definition of short term implies duration of around 2 to 3 months.
Short Term stock picking is no rocket science, but rather a visual interpretation of technical charts. A basic moving average on a time frame chart will show the direction of the securities movement.
Moving averages is a mathematical results calculated by averaging a number of past data points. Moving averages (MA) in it's basic form is calculated by taking the arithmetic mean of a given set of values on a rolling window of timeframe. Once the value of MA has been calculated, they are plotted onto a chart and then connected to create a moving average line. Typical moving averages used for short term trading are 50 MA and 100 MA.
Types of Moving Averages
1) Simple Moving Average (SMA)
SMA is calculated by taking the arithmetic mean of a given set of values on a rolling window of timeframe. The usefulness of the SMA is limited because each point in the data series is weighted the same, regardless of where it occurs in the sequence. Critics argue that the most recent data is more significant than the older data and should have a greater influence on the final result.
2) Exponential Moving Average (EMA)
EMA overcomes the limits of SMA, where more weight is given to the recent prices in an attempt to make it more responsive to new information. When calculating the first point of the EMA, we may notice that there is no value available to use as the previous EMA. This small problem can be solved by starting the calculation with a simple moving average and continuing on with calculating the EMA.
The primary functions of a moving average is to identify trends and reversals, measure the strength of an asset's momentum and determine potential areas where an asset will find support or resistance. Moving averages are lagging indicator, which means they do not predict new trend, but confirm trends once they have been established.
A stock is deemed to be in an uptrend when the price is above a moving average and the average is sloping upward. Conversely, a trader will use a price below a downward sloping average to confirm a downtrend. Many traders will only consider holding a long position in an asset when the price is trading above a moving average.
In general, short-term momentum can be gauged by looking at moving averages that focus on time periods of 50 days or less. Looking at moving averages that are created with a period of 50 to 100 days is generally regarded as a good measure of medium-term momentum. Finally, any moving average that uses 100 days or more in the calculation can be used as a measure of long-term momentum.
Support, resistence and stoploss can be infered by referring the closet MA below or above the market price. The other factor that is used in short term momentum is the trading volume. The moving averages along with the trading volume can provide a better insight to short term movement.
Markets are moved by their largest participants - I believe this is the single most important principle in short-term trading. Accordingly, I track the presence of large traders by determining how much volume is in the market and how that compares to average. Because volume correlates very highly with volatility, the market's relative volume helps you determine the amount of movement likely at any given time frame--and it helps you handicap the odds of trending vs. remaining slow and range bound.
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