Satyam @20-30 - Now a good buy ? Yes!!

#1
Dear Members,
After yesterday's actions by govt. I think satyam can be a good bet if it crosses Rs.30 on monday. We can see it @70-100 levels within 10-15 days. The reasons are:
1. Satyam has a very good customer base and every business house would be interested in, ignore the words they are saying right now. (internaly their mouths are producing a lot of water but they are not showing their interest as they know very well that it can reduce their present market cap immediately).
2. Govt. will definitely provide some financial backup bcz satyam has 53k employees and the elections are ahead.
3. Any IT co's reputation depends upon their customers base and every one knows that Satyam has a very good customers base.
4. L&T and LIC is still holding stacks, just think why? What are they waiting for?
5. L&T is experienced in IT field and after the Raju & Co. they are in the majority with 3.5% holdings.

Friends share your opinion in this new scenario!!

Regards
Vijay
 
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kapil123

Well-Known Member
#2
Dear Members,
After yesterday's actions by govt. I think satyam can be a good bet if it crosses Rs.30 on monday. We can see it @70-100 levels within 10-15 days. The reasons are:
1. Satyam has a very good customer base and every business house would be interested in, ignore the words they are saying right now. (internaly their mouths are producing a lot of water but they are not showing their interest as they know very well that it can reduce their present market cap immediately).
2. Govt. will definitely provide some financial backup bcz satyam has 53k employees and the elections are ahead.
3. Any IT co's reputation depends upon their customers base and every one knows that Satyam has a very good customers base.
4. L&T and LIC is still holding stacks, just think why? What are they waiting for?
5. L&T is experienced in IT field and after the Raju & Co. they are in the majority with 3.5% holdings.

Friends share your opinion in this new scenario!!

Regards
Vijay
At this time it is like trying to catch a falling knife. I am not getting into arguments whether it is a good buy or not at the moment. But the reason for this post of mine is that before some clarity on the position the company is in, it's not wise to invest, unless of course it only a betting call.

Satyam has a good client base, but at what profitability is the question. And how many clients will stick with the company. Won't the company have an uphill task in retaining the clients?

The second point you have mentioned is Govt providing back up. Yes this is a possibility, but do you remember Global Trust Bank. Though the bank and employees were bailed out by the Govt, what happened to share holders? Nobody could get even a penny for their holdings.

It is a wrong notion that only customer base is important for the IT company. Many IT companies have been facing pressures because of the tight margins and less profitability. Profitability is very important for any business to succeed.

As far as L&T and LIC still holding stocks, many majority holders have liquidated their holdings at throw away price. Why? Would a financial institution take a major financial hit just like that?

Also, after this recent exposures, L&T has not made any attempt to increase their holding. They are waiting on the sidelines for a clear picture to appear. Why are they not increasing their share holding at these throw away prices?

These are some of the questions that one should look into before investing, unless and until it's a pure gamble.
 
#3
Hi Kapil,
Today share market is nothing but a gentle & legal version of gambling. What is F&O? can you tell me, what is short selling and why it is existing? My brother if share market is a investing market today then why the delivery based transactions are only 10-30% in general. In the total transaction of 50k cr. around 40k cr comes from F&O market. Hardly 2-3K cr. transactions converts into delivery and we dont know for how may days (forget months or years).
The real so called retail investers are hanged up with 18-21k range of sensex and still waiting for the same level to come out from their investments and say good bye to the market.

regards
Vijay

At this time it is like trying to catch a falling knife. I am not getting into arguments whether it is a good buy or not at the moment. But the reason for this post of mine is that before some clarity on the position the company is in, it's not wise to invest, unless of course it only a betting call.

Satyam has a good client base, but at what profitability is the question. And how many clients will stick with the company. Won't the company have an uphill task in retaining the clients?

The second point you have mentioned is Govt providing back up. Yes this is a possibility, but do you remember Global Trust Bank. Though the bank and employees were bailed out by the Govt, what happened to share holders? Nobody could get even a penny for their holdings.

It is a wrong notion that only customer base is important for the IT company. Many IT companies have been facing pressures because of the tight margins and less profitability. Profitability is very important for any business to succeed.

As far as L&T and LIC still holding stocks, many majority holders have liquidated their holdings at throw away price. Why? Would a financial institution take a major financial hit just like that?

Also, after this recent exposures, L&T has not made any attempt to increase their holding. They are waiting on the sidelines for a clear picture to appear. Why are they not increasing their share holding at these throw away prices?

These are some of the questions that one should look into before investing, unless and until it's a pure gamble.
 

praveen taneja

Well-Known Member
#5
Bro it was just behind Rs 6.30 from all time low mean 0 yesterday.
Better wait for that n then enter in to a big bargain
God bless u
 
#6
bro,
think that satyam was sub 10 level for a fraction of minutes. Who bought at that level.
I think all the selling has been absorbed and stock is in brave hands. it makes sense to buy small quantity now.
happy trading.
 
#7
bro,
think that satyam was sub 10 level for a fraction of minutes. Who bought at that level.
I think all the selling has been absorbed and stock is in brave hands. it makes sense to buy small quantity now.
happy trading.
LIC and L&T are among those brave hands, let's see.
 

Flock

Well-Known Member
#9
I think it has been removed from F&O by NSE. Does that mean 5% circuit will apply? If that is the case you may not see any major moves for a long time.
 

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