Stock Trading Tips, Analysis & News

1) Kiran Karnik new chairman of Satyam claimed that Satyam not cutting down manpower & news of cutting down 13000 employees are rumors

2) Satyam getting new clients as well losing some clients. Kiran Karnik said its common and happens with every IT company.

3) Govt. not willing to sell Satyam at the earliest because real value of Satyam may be higher.

4) Sebi wants 2 more days to probe Raju because they suspects Raju has bought 6500 Cr land through Rajayya a congress man

5) Clever L & T want to get Satyam at very very cheap price.

6) Satyam is trading in a range of 45-49 nowadays.

Today Satyam board made announcement of new CEO. AS Murty will be new CEO of Satyam. Murty was global business head of Satyam. Board also announces Board also announces Homi Khusrokhan and Partho Datta as special advisors. Satyam got a loan of 600 Cr as working capital from banks.

In between it is believed that Satyam has paid employees salary for january month from a cash balance available at company, this makes clear that company had cash balance. I suspect from day 1 since Raju’c confession that Satyam already had a cash balance & Raju diverted it to his infrastructure company Maytas over last 3-4 years. Company was never running in loss, it is profit making company. If company were making losses how Raju able to pay salary of 53000 employees over so many years? According to some sources Satyam requires 200 Cr per month to pay salary of employees. This couldnot be possible for loss making company to bear that much manpower. So it is clear that Raju siphned money.

I don’t know when investigation result will be out, why it is taking too long time to unreveal true story. And now SEBI is investigating Raju behind bars. It already have investigated Raju last 2 days, still they have 2 more days left to investigate him. Meanwhile market has taken it negatively and Satyam share cracked down from 61 to 46 in last 3 trading sessions. Poor investors again got stuck, some of them have bought shares above 100/-, they are suffering all this loss unnecessarily. I think SEBI might announce open offer auction in this counter as early as possible so that investors wont suffer anymore loss further.

Today reality sector hit badly as there are news that DLF has inflated balancesheet. DLF lost 13% today , its all time low now around 132.50 but it is not recommended to invest in DLF untill picture will clear. DLF & Unitech both posted big loss in this quarter, DLF’s profit 65% down while Unitech’s profit 95% downm both companies are facing lot trouble nowadays.

Other reality stocks which hit badly today includes HDIL, IBR. HDIL’s last trade price is 79/-, its attractive level to invest, one can start buying from here. While IBR is 93 by end of day and its all time low is 83. IBR was my favorite share in past due to high volatility, it can gain 25% a day.