sir

Originally posted by ph_075 sir   so u mentioned in forum that you are looking at Tata Coffee Ltd. you posted this in 2006 and now we are in 2008,, i just read your forum and even i have found this counter a nice investmnt oppurtunity   Now one thing which i wish to know is does Tata Coffee Ltd. still remain a buy at 266-270 levels?   Thanks

interesting write up on Tata Coffee

http://nowearn.blogspot.com/2007/09/tata-coffee-can-you-smell-brew.html

 Tata Coffee-Can You Smell The Brew?

Could 2008 turn out to be the year of Tata Coffee? It could.

The largest private sector producer of Coffee, Black Pepper, White
Pepper and Cardamom, Tata Coffee owns thousands of acres of rich,
mountainous farmland in Coorg, India.

With 5000 tonnes of Coffee exports per annum, Tata Coffee is also the
largest-grower exporter of Coffee in the country with tie-ups that
include the up-country Starbucks.

Post Acquisition of the 8 "O" Clock Chain in the US, Tata Coffee is
well equipped to satisfy the taste buds of the Americans. 7 out of 10
Americans are believed to be Coffee drinkers making the nation the
largest Coffee drinking market in the World.

Investors would do well to realise that the next boom in Real Estate
will feature agricultural communes and concerns like Tata Coffee with
farmland and resorts in Coorg could be key beneficiaries.


The Federal Reserve cut both its federal funds rate and the discount
window rate a generous half percentage point last Tuesday, in an
effort to prop up a cratering U.S. real estate market, and to prevent
the economy from slipping into recession.

At the same time, the Fed noted that, "Some inflation risks remain,
and it will continue to monitor inflation developments carefully."

Heck, Fed Chairman Ben Bernanke doesn't need to look farther than his
morning cup of coffee to see inflation at work. Prices are on the
launch pad, up more than 6% just this past Monday!

In fact, just about everything in your morning breakfast is only going
to get more expensive, as agricultural commodities, led by wheat and
soybeans, get swept up in a rip-roaring bull market.

The good news is there are ways you can play the coming move that will
perk up your portfolio with potential profits. I'll get to those in a
bit. First …

What's Brewing Behind the
Scene in Coffee Beans?

Last week, the International Coffee Organization (ICO) upwardly
revised its forecast of 2007-2008 global coffee consumption to at
least 122 million bags, a rise of 1.4% from 120.3 million bags in
2006.

The ICO projected that coffee production would rise at the same time.
However, that forecast depended on Brazil, the world's biggest
producer, having a bumper crop.

On Monday, Brazil dropped a bombshell: It said its main coffee-growing
region is suffering a severe drought, one that will likely hurt the
harvest.

As a result, Brazil will reap 2.2 million metric tonnes of coffee this
calendar year, down from 2.59 million in 2006, according to the
Brazilian Institute of Geography and Statistics.

Brazil's coffee crop has gotten punished by uncooperative weather.
Brazil produces both arabica and robusta coffee beans.

About two-thirds of the world's coffee is arabica, which is preferred
by coffeehouse operators including Seattle-based Starbucks.

Robusta beans are used in instant coffee, espresso and low-cost blends.

To make matters worse, Vietnam, another big coffee producer, should
see its harvest of robusta beans fall by about 3.2% to 18 million bags
in the 2007-2008 crop year.

Add it all up, and you can see why coffee prices took off like a
rocket on Monday.

Coffee isn't the only commodity that's roaring higher. Indeed, over
the last month, it's only the ninth-best performing commodity!

Of course, there's one country I haven't mentioned yet …

China: Epicenter of an Economic Earthquake
That Is Reshaping Global Markets

China has seen its harvest hammered by drought. At the same time, its
citizens are becoming more affluent and can afford to eat more and
better food.

That's why, in just the first half of this year, food prices in China
rose by an average of 7.6%, led by a 70% jump in the price of pork.
Beef jumped 49% … fresh vegetables sprouted 22.5% higher … and eggs
rose a sizzling 27.9%.

This isn't a one-month trend. This is a fundamental shift in global markets!

We're used to food prices being cheap, but now we're in competition
with China, India and other emerging markets for the food on our
tables. They have more and more of our money every day, and they will
bid up the price of just about everything at the supermarket.

When you add in other NEW sources of demand — such as ethanol and
other biofuels — you can see why prices could go much, much higher for
a long time.

The smart money is starting to get interested. Commodity guru Jim
Rogers has said that soft commodities are where the biggest gains will
be made over the next five to 10 years.

And even Rogers could be playing it conservatively. Christopher Wyke,
from fund manager Schroders, was recently quoted as saying …
"After coming out of a quarter-century bear market in agricultural and
soft commodity prices, we are now at year one of a 20-year bull
market."
How to Perk Up Your Own Profit Potential

With coffee prices percolating higher, you might want to buy one of
the companies that will be brewing up profits.

Starbucks is the big daddy of coffee, of course, and with 13,000
coffee shops in more than 35 countries, the sun never sets on its
revenue stream.

It will probably be able to pass along price hikes despite griping
from consumers, because millions of its customers need their daily
fix. And by some metrics, this king of the coffee shops still looks
cheap.

Another taster's choice would be Green Mountain Roasters. It roasts
about 100 varieties of arabica coffee, which it sells to more than
8,000 wholesale customers including supermarkets, convenience stores,
and office coffee services.

And Finally it has to be Tata Coffee-the owners of the 8 "O" Clock
chain in the US and a key ally of Starbucks.

at what level have they hedged the dollar? maybe it could be due to that forex losses coming up in july.maybe

Thanks Rohit, so my apprehension was right this is not related to fundamental. I was in the middle of reading the latest annual report and this happened. On first look, This is on the cusp of a non-linear profit growth despite moderate sales growth.