Is DLF on the way to another SATYAM ?

Discussion in 'Equities' started by actuaryinmaking, Jan 10, 2009.

  1. actuaryinmaking

    actuaryinmaking Active Member

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    Folks -

    Closely following news activities, exchange transactions being done and data - Is DLF on the way to another SATYAM ?

    http://economictimes.indiatimes.com/Infotech/Software/Satyam_CFO_who_attempted_suicide_had_offloaded_over_92000_shares/articleshow/3958693.cms

    After Raju, focus now shifts to CFO Vadlamani
    10 Jan 2009, 0425 hrs IST, TNN

    HYDERABAD: In the first half of September, Srinivas Vadlamani suddenly offloaded 92,358 shares of Satyam in the stock market. When quizzed about it, he said that he needed the money because he was building a house and could not manage without liquidating his ESOP holdings. That answer had satisfied curious newshounds then.

    However, after the Raju confession, it appears the chief financial officer (CFO) was working hand in glove with him. Did he have an inkling that the bubble could burst? That explains his decision to offload shares.

    Incidentally, Ram Mynampati, the new interim CEO of Satyam, had also sold off shares during the time. On Thursday, Vadlamani put in his papers. On Friday morning, there were rumours that he had attempted to take his life. Vadlamani has been on the run for the last couple of days.

    “He is not staying at his own house for security reasons,” a friend of the CFO said. The rumours about suicide surfaced the day when SEBI officials , along with sleuths of the Serious Fraud Office, landed in Hyderabad to investigate the books of Satyam.

    Now potentially liable to be charged for insider trading, among other things, Vadlamani had accumulated enormous wealth in his long tenure at the company. His colleagues say he-like his boss Raju-also believed that real estate was a great investment idea.

    Little wonder then that he pumped in a lot of money into the business. There are also rumours that the CFO has a stake in a real estate venture in Dubai.

    “Vadlamani followed the footsteps of his boss and would invest in Hyderabad realty close to where Raju would or where Maytas would buy land. He knew these places would surely grow,” says a company insider. Vadlamani excercised tremendous clout in company matters and had total grip on the finance function. “His office would keep tabs over even small bills. So he is one man who knew the innards of the company,” a Satyam staffer says.

    Not surprising, to reach the position of being a confidant of Raju, Vadlamani had been in the company for over 15 years. “He is actually a mediocre, but a shrewd fellow. A lot of other people left the company over years. But since he continued in the company, he grew,” a distant relative of his says.

    “Raju considered him loyal to him,’’ the relative adds. Vadlamani, whose resignation is pending, is however not on the board of the company. The CFO is officially designated as director and senior vice president.
     
    Last edited: Jan 10, 2009
  2. actuaryinmaking

    actuaryinmaking Active Member

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    http://economictimes.indiatimes.com/stocks_in_news_home/DLF_CFO_sells_shares_stock_down_20/articleshow/3955737.cms

    DLF CFO sells 1 lakh shares, stock down 20%
    9 Jan 2009, 1217 hrs IST, Supriya Verma Mishra/Ashish Rukhaiyar, ET Bureau

    MUMBAI: DLF's chief financial officer Ramesh Sanka sold his entire stake in the company on January 5 citing personal reasons. At 12 noon, the stock was down nearly 21% at Rs 187. Earlier in the day, it touched a low of Rs 145 on BSE.

    According to a stock exchange announcement, Mr Sanka sold one lakh shares of the company in a deal amouting to Rs 3.05 crore. The deal was done through kotak Securities. The shares that Mr Sanka sold were part of ESOPs that were alloted to him.

    Interestingly, while there were rumours in the market that Mr Sanka has resigned, company officials have denied any such development. DLF is India's largest real estate developer. For the Sept'08 quarter it clocked revenue of Rs 3,744 crore and net profit of Rs 1,935 crore. However going ahead the sector is expected to face a slowdown.

    - evenue of Rs 3,744 crore and net profit of Rs 1,935 crore.

    Did company really made 50% Profit ???
     
    Last edited: Jan 10, 2009
  3. actuaryinmaking

    actuaryinmaking Active Member

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    economictimes . indiatimes . com/stocks_in_news_home/DLF_CFO_sells_shares_stock_down_20/articleshow/3955737.cms

    economictimes .indiatimes .com/Infotech/Software/Satyam_CFO_who_attempted_suicide_had_offloaded_over_92000_shares/articleshow/3958693.cms
     
  4. actuaryinmaking

    actuaryinmaking Active Member

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  5. RSI

    RSI Well-Known Member

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    What a beautiful chart. Rs.150 level tested twice and rejected on both occassions. Last rejection has been quite quick and violent and accompanied by ultra high volume. Is the test of Rs.300/- on the cards?

    Sadly, if I have to go long, I will have to do so above Rs. 235/- for a target of Rs.300/- with a stop below Rs.150/- Risk reward ratio is not good. I am just watching the chart. Day traders, it is altogether different game plan with altogether different stop and target. I am not day trading.
     
    Last edited: Jan 10, 2009
  6. actuaryinmaking

    actuaryinmaking Active Member

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    India deals overvalued - private equity chief
    Fri Jan 9, 2009 11:17 PM IST

    By Simon Meads

    LONDON (Reuters) - Indian family businesses are still overvalued by 20 to 30 percent, while the best value is to be found in China, Brazil and sub-Saharan Africa, a partner at a leading emerging markets private equity firm said.

    "The entrepreneurs are still in denial; we have seen this on two cycles before," Actis partner and global head of fundraising Jonathan Bond told Reuters.

    "The Indian entrepreneurs are very rapid on the way up, but on the way down they are still a bit sluggish," he said, adding listed markets in both India and China had been highly overpriced until recent stock market corrections.

    http://in.today.reuters.com/news/ne...231207Z_01_NOOTR_RTRMDNC_0_India-373682-1.xml
     

  7. bandlab2

    bandlab2 Well-Known Member

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    my sincere advice, dont toch eal estate companies, they could go own 80% like satyam overnight due to rumous/scams/frauds. without giving any exit opportnities
     
  8. star09

    star09 New Member

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    i thnk some golmal is happening inside dlf

    the stock seems to be seem highly volatile.

    rumours apart, someone from inside sold a big chunk of shares causing a sudden fall.

    just wait n see this stock is probably going downwards in the coming months
     
  9. RSI

    RSI Well-Known Member

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    Once upon a time when I was just bored, I started live coverage of DLF stock. In this thread

    http://www.traderji.com/technical-analysis/19845-simple-analysis-2.html

    For timepass, if you are interested you can read it. I did not see the DLF chart since then. Even in my last post also I said I am not going long as risk reward ratio is not favourable.
     
  10. masterjee

    masterjee Active Member

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    40% of sales posted to dummy associate companies - from which no cash is ever going to flow in.... you will see it below par value in a few years... till then enjoy trading.

    m
     
    Last edited: Jan 12, 2009
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