Re: Satyam
Hi,
If Satyam gets back to it's former highs as Mahindra Satyam then there is great profit possibilities over the medium and longer term.
It has been moving steadily and nicely for me at least.
Issues is that the accounts have to be re-done again as someone was not satisfied.
Mahindra polled the existing customers who all said they were happy dealing with Satyam and preferred to keep the Satyam name.
Mahindra wants to look at smaller contracts to consolidate and start rebuilding new business. This is what you need to keep an eye on is that they are building new business and that the whole Satyam problems are put behind them after the legal proceedings are over. Mahindra claim that any payouts are already factored into their plan.
My opinion is that the new management are capable of carrying this company forward profitably and successfully. Invest tentatively now, and add when there is good news and breakouts, keeping careful stops in the near term.
Hope this helps.