Satyam is now History

Ramalinga Raju, atlast decided to speak satyam ( satyam means truth) but damages already done. I don’t wish to narrate the story again as it is available all through out net. But one thing really surprised me is that some analysts advocated buying of Satyam at Rs.66 today in some business channels (Value uying). Yes. Their argument at that point of time was that the price discounts only 3 times of next year projected earnings. We can at best call this logic as “supreme idiocy” . Nonsense’s. Satyam is a history now. They neither have assets or good-will to continue in the business. Even if you give me Rs.100/share to buy this company, I wouldn’t buy this company. Worth of Satyam shares after Raju’s admissions become zero. If you are one of the poor chaps holding this worthless company, my advice is Sell even at Rs.10. You will not regret your decision.
Market would soon recover (from over negative reactions) and move past 3000 as Satyam is thrown out of all Indices including Nifty. Sataym is replaced by Reliance Capital in the Nifty. Till next issue prop up, all media would discuss about corporate governance with out any beneficial effect. Property prices in and around Hydrabad would decline and ICICI Bank and HDFC Bank would loose around 40000 salary customers. Satyam employees may soon default loans they got from banks and financial institutions. So the effects go on and on. So short term pressures may be expected on Reality firms, HDFC, HDFC Bank, and ICICI Bank.

The lesson is don’t do bottom fishing in the Bear market. Sell satyam and don’t believe bailout, take over and turn around stories about Satyam. Yes. Satyam is history now.


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