Stock Trading Tips, Analysis & News

Hinduja Global has prepared 100 day plan for Satyam

admin — Fri, 13 Feb 2009 09:16:45 +0000

Hinduja Global Solutions, the BPO arm of the Hinduja group — one of the interested parties in acquiring the scam-tainted Satyam Computer Services [Get Quote] — said it has chalked out a 100-day plan, just in case it is successful in its attempt. Meanwhile, it has written to the merchant bankers involved in the transaction.
“We are very interested in Satyam and accordingly, we have written to the merchant bankers but are yet to receive any reply,” said Anand Vohra, CFO, Hinduja Global Solutions.
About what would be the plan of action in case the company is successful, he said: “We will need to have a 100-day plan in place. This will look at four essential areas. One team will concentrate on customers and meet with them and address their concerns. Second, we will have a team that will tackle the HR issue and take care of employees issue. Another team will look into the account of the company and last, a team will try and see how we can maintain the cash that the company has and make no further losses.”
Vohra also said the company has not approached the board or any of the bankers in a personal capacity. However, he felt that the board should hasten the process.
When asked if the company was ready to acquire despite the fact that the auditors will still take some time to give the eHinduja Global chalks out 100-day plan, in case it gets Satyam.

Crude Oil Declined

admin — Fri, 13 Feb 2009 06:56:03 +0000

Crude oil continued to slide and ended down $2 at below $34 a barrel on Thursday. It is currently trading at USD 34.4 a barrel. I think it is good chance to invest in Crude Oil in downtrend it can go to 30$, but if bounced back it can cross 42$ easily.

Railway Stocks Up

admin — Fri, 13 Feb 2009 06:51:49 +0000

Railway Stocks up today as rail budget going to declare today

Kalindee Rail :- Up by 12.75% (145.80 to 163.60)
BEML :- Up by 4.33% (394.90 to 412)
Texmaco :- Up by 7.25% (57.90 to 62.10)
Titagrah Wagons :- Up by 6.51% (246.50 to 262.50)
Stone India :- Up by 4.88% (22.55 to 23.65)
Kernex Micro :- Up by 9.97% (85.75 to 94.60)

These are positions by 12.20 clock at 13 Feb.

Satyam Up Today

admin — Wed, 11 Feb 2009 12:51:25 +0000

After continuous 8 days downtrend from 61 to 41 finally Satyam showed green today, its like Oasis in Desert for investors who holding Satyam share.
Satyam traded with high volume today & there is too much volatility at this counter, At beginning it declined by 2-3% to show 41.15 as days low and suddenly in few minutes it rise to 48.35 days high, at end of day it stabilized at 47.15.Today it traded with 53205035 volumes and ranked 8th among active stocks at NIFTY.
Karnik said the company’s long-term plan would be in place in seven to 10 days. He added that the beleaguered tech firm was yet to pay February salaries to its employees but was in a position to do so.
There is news that bidding for strategic partner for Satyam will start soon.Bidding will take place in 2 phase.The debate over whether Satyam will induct a strategic partner through a bidding process seems to be over. The board is clear it will be through a bidding process. Moreover, the board which meets in Mumbai on Thursday is also expected to discuss appointing an independent committee to oversee the bidding process.independent committee headed by a retired Supreme Court judge would oversee this bidding.
Satyam will lay down stiff eligibility norms for the bidders; wherein the potential acquirer must have a sound IT track record and they would have to subscribe to fresh shares as well.
Sebi is close to finalising the norms for acquirers in special circumstances like Satyam. Sources that special circumstances would be triggered in the event of government or CLB or regulators superseding a board. The request for waiver of ordinary takeover norms would come from the company’s board and not the acquirer.
Hope it will cross 50 mark soon.

Reality Sector Up

admin — Wed, 11 Feb 2009 12:48:39 +0000

Reality sector is up in last 3 trading sessions..There is a news that 3rd bailout package coming soon which will benefit Infrastructure & IT sector..DII’s are buying reality stocks which includes DLF,unitech also..In between Governement is planning to cancel STT tax upon share transaction (delivery) which is beneficial for investor as STT tax charges lot money per transaction..Governement also planning to reduce income tax for corporate sector to 30% & for personal to 25%..

Satyam Update

admin — Mon, 09 Feb 2009 12:04:11 +0000

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.

Spice ready to buy 51% stake in Satyam

admin — Thu, 05 Feb 2009 20:16:13 +0000

B.K Modi of Spice Tele said he is willing to buy 51% stake at Satyam for 2000 Cr. Spaice also suggested that there should be eAuction for takeover of Satyam meanwhile L&T has opposed for eAuction as L & T have 12% stake in Satyam and they have right to oppose eAuction. Modi said that L & T should have to declare why they opposing eAuction.

Satyam appointed new CEO

admin — Thu, 05 Feb 2009 20:03:20 +0000

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.

Reality Sector Down By 6%

admin — Tue, 03 Feb 2009 12:41:10 +0000

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.

Satyam Signs 15 New Contracts

admin — Tue, 03 Feb 2009 12:30:28 +0000

Satyam got 15 new contracts in January monthm most of then are insurance and phrmacutical companies. Two of them are from JP Morgan chase and 95% of old top clients are still with Satyam. I think if Satyam continue getting such contracts per month its value can be 150+ within next 5-6 months. Meanwhile SEBI has got permission from AP Highcourt to question Raju, Market discounted this news which in result led to 6.27% fall in Satym’s price and it closed at 53.75 by end of day.

There is lot of confusion regarding open offer price of Satyam as SEBI said yesterday in Press Conference that price before 7th January is not valid and even price after 7th Jan is not valid as well. So according to many experts Satyam’s open offer price will be closely related to its current market price. It may slight above/below current market price.

There are many companies in race for acquiring Satyam which includes L & T, iGate global, Hinduja Global, Spice Tele, Tech mahindra. So once open offer price declared bidding will happen which can trigger share price by 25% to 50% from open offer price. We can hope for best.