2000 CRORE BAILOUT TO SATYAM : HISTORIC BLUNDER

B.Ramalinga Raju - India Economic Summit 2008

Image by World Economic Forum via Flickr

Two thousand crores. This is the amount this Government is mulling to throw it on Satyam. This decision is based on three assumptions.

Satyam would retain it’s customers after Government’s actions ( Nice day dream : After all these Fortune 500 companies need to answer their shareholders)
Satyam would be able to recover it’s lost cash reserves and future receivables. ( Some Possibility)
Satyam is a isolated case. No other Indian company would report the same problem ( I expect atleast 10-15 cases if we pursue this matter proactively)

I leave the validity of the above three assumptions to the wisdom of readers. This decision might be seen as a historic blunder. It is not fair also.

Government's infusion of capital would be boost the sentiment of Satyam stock and arrest the short term value erosion. But long term outlook remains bleak. Investors should vaoid any exposure. Traders can trade. It seems luck is on trader's side. God bless Poor India. Dr.Manmohan singh may regret this decision later.

0 comments:

Disclaimer & Privacy Policies

(c) Mrs. Ruby Christy. This site and contents are owned by Mrs. Ruby Christy;
Use of this website and/or services offered by us indicates your acceptance of our Disclaimer& Privacy Policies.
Information and opinions provided on this website (www.investchips.com) has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. Investchips.com and its affiliates, information providers or content providers and R.John Christy and his Family shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this website or feeds, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information. Investchips.com,its affiliates, information providers ,content providers and R. John Christy and his Family shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this website. Any action you choose to take in the markets is totally your own responsibility. Investchips.com and R. John Christy and his Family will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. This information is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. Opinions expressed by R. John Christy are his own and not of his past, present and future employers.
The DoubleClick DART cookie is used by Google in the ads served on this websites displaying AdSense for content ads. When users visit this website and either view or click on an ad, a cookie may be dropped on that end user's browser.

Google, as a third party vendor, uses cookies to serve ads on this site.
Google's use of the DART cookie enables it to serve ads to your users based on their visit to this site and other sites on the Internet.
Users may opt out of the use of the DART cookie by visiting the Google ad and content network privacy policy.
www.investchips.com never collects any personal information of visitors.

WWW.INVESTCHIPS.COM