Offline
Market Outlook - Short Term |
| Belongs to: Market View |
Tracked by: 0 Boarder
Auditors should be changed for every financial year, these type of frauds can be eliminated with in months time... so, I higly pledge ICAI to look forward this matter......
In reply to:
Fraud to take Satyam stock to Rs 10: Shankar Sharma
Posted by :
MMB Messenger
Shankar Sharma of First Global said Ramalinga Raju’s confession to the fraud in Satyam`s books would have a huge impact on FII and FDI sentiment in India. "An emerging market has to be more careful. We expects the stock to go down to Rs 10-30 levels. 
Tracked by: 4 Boarders
helloo kadiyalii... thanx for your views.. after so many days made some profit... :)
On your advise i sold 1 lot of 1200 Reliance put @ 75.00 bought today at 24.00 and still hold another put bought at 50.
Further i still hold 2900 Put (99.00) and also 2500 Put (9.00) alongwith other puts of DLF, TISCO and ICICI Bank.
I was a bit worried when you said get out of your puts.. does it mean the downtread is over... i am cofused do i get out of it 1st thihng on friday or wait for some time for better profits..
Further I have also bought 2 Lots of 120 CALL of satyam around 3.80...
Kindly let me know your views on the above.
Best Regards,
Kushal.
...
In reply to:
stbt : nifty fut.
Posted by : kadiyali
Kushal,
Come out of both lot today immediately. Encash whatever profits in
whichever puts holding. Invest all profits in Satyam. I have
closed all my position today, including a big profit intraday nf
short, and invested all profits in Satyam at 31. I am not bothered
even if Satyam goes down further, because the entire investment is
out of profits of today. As already informed earlier, I did not
trade anything yesterday, but it more than got compensated today.
This was my busiest trading day for the last two months. Rgrds.
Tracked by: 3 Boarders
Hi Rittu,
Finally my strategy seems to be paying off.. Had been buying ICICI puts, and selling calls at higher levels..
Even NTPC analysis came true, its weaker than SAIL.... NTPC will become extremely oversold if it opens with a 3-4 point gap down... So will Suzlon around 48... Good levels to play for an intra-day bounce..
Expect further downside if there is a gap-up opening on Friday... A gap down, would cut quite a few short positions... On gap up, 2960-2984 should be good levels to add fresh shorts.
What`s your outlook now?
May login only on Monday/Tuesday as busy with a major bridge tourney till Sunday.
Regards
...
In reply to:
Where do you see Nifty in January?
Posted by : nightowl
very very careful...
some long positions... but only those that am willing to hold to FOR LONG TERM incase it goes wrong...
otherwise am a VERY wary at the moment.
have an existing nifty short... that may come in handy as a cushion if needed...
REGARDS
RITTU
Tracked by: 1 Boarder
Well written but wee bit emotional.
Its not right to put the blame on auditors as they will also believe like us or SEBI or NYSE what the promoters show them...the figures are up for debate for everyone. The biggies (auditors) are as easy to fool if not easier than SEBIs and NYSE so its unfair to put blame on them without knowing the details.
The worst is none of the Directors were aware of this scam..so who and how did they plan it? How could they continue to be listed with SEBI and NYSE? What happened to SOX Compliance or Clause 49?
Its sad but true...pity all the investors and small stock holders...may be even one of my MFs with Fidelity might go down the drain...more dirt will come...wait and watch....helplessly!- Amrita Sapre...
In reply to:
Satyam: A cleverly crafted scam
Posted by : MMB Messenger
Ramalinga Raju, Chairman of Satyam has resigned from the board, reports CNBC-TV18. In his letter to the board, Raju admitted that the IT major`s balance sheet has inflated cash and bank balance of Rs 5,040 crore
Tracked by: 4 Boarders
Dear victor08,
If you remember my post dated 5th on NIFTY OUTLOOK, I had clearly
mentioned nifty will see negative close for 3 days. The day one was
yesterday with neglible loss. The day two is today with a very big
loss beyond anybody`s expectation. The day three will be Thursday
with a certain negative close. But gap up opening for Thursday is
very certain. Regarding Satyam buying, I took all shares by way of
100% cash delivery at 31. Thursday Satyam will open above your
buying price. Rgrds....
In reply to:
stbt : nifty fut.
Posted by :
victor08
Dear kadiyali,
Congrats for your success and your NIFTY puts profits. From your write up, it is not clear whether you have taken long Future on Satyam or has acquired Cash.I have also acquired today Satyam @51/- on delivery basis. My price, it appears, much higher than yours. Now, would you plz come out with your NIFTY projections for the next trading day. I am having shorts @ 2867 and long @3050. Today`s fall in the market made me perplexed to understand to take any decision. Ple help.
Regards,
Tracked by: 1 Boarder
But why this confession ? What puzzles me is this confession - this scam has been going on for so long and it would have gone unnoticed for a few more years or so, so what is the need for Raju to do this confession ? Couldn’t he have just resigned or appointed someone close to him as a chairman who would have listened to him while he could have bought time to work out some alternate strategies ?
Something is missing here ? This is almost akin to commiting a suicide ? Why did he have to do it knowing pretty well the consequences of this ? He is not that stupid having crafted such a clever scam ? Who is he protecting or is there something much more bigger that we still do not know here !!!!!!?
...
In reply to:
Satyam: A cleverly crafted scam
Posted by : Udayan Mukherjee
So even if there is any kind of a modest bounce in Satyam from whatever price level because people believe that the 5,000 crore of cash is still there, there is a big line of people and the Fidelity and Aberdeen’s of the world are not going to stand down with Satyam right now because of whatever cash is lying on its books. They want out and they want out like yesterday.
So this stock now has huge amount of overhead supply which just cannot be absorbed because the number of sellers far outnumbers the number of buyers in Satyam Computers at any price point. So this stock could fall to Rs 10 even if there is cash on the balance sheet because there would be a large number of institutional investors who have completely seen this lie and I do not think that they would want to hang on there at Rs 80-70 because of any kind of cash lying on its books.
This stock’s value despite the cash or the business operations right now is probably in single digit rupees. Nobody trust this, you have just broken down the trust completely, how do you believe a management which just cooked up everything from its balance sheet to its earning statement over the last many quarters and serially quarter after quarter went on national TV and reported to the exchanges one magnificent lie after another. It is just completely preposterous.
Who do you believe now?
Satyam is a company which is listed on the New York Stock Exchange (NYSE); this is an index company, quarter after quarter it announces numbers which we take as gospel and we do a lot of analysis, every analyst does on whether margin slipped a bit and wage hikes happened and now you know that none of those numbers existed then who do you believe?. Do you believe auditors, who are supposed to be looking at these companies?
This is a fundamental issue of trust and faith which has been shaken. One can forget about the Satyam stock much that we feel very bad about Satyam shareholders that is one company. Here you stand the risk of actually losing your faith and trust in the system, which is supposed to be policing the numbers which you have faith and trust in. What happens to the auditors? This is a company which is not a fly by night small company, it is listed on a global exchange, global investor – they are supposed to be following US GAAP norms etc and quarter after quarter they keep blinkering all their investors and none of us find out till the promoter one fine day decides to confess.
Could there be more companies doing these kind of thing? What are the auditors doing? How will we ever know? You and I cannot be looking at going into and checking the bank accounts of Satyam and what they earned in a particular quarter or not. At some level there has to be an implicit code of faith that we believe what is posted on the walls of the exchange but today we cannot. So what are these people doing – these auditors and tax consultants and even rating agencies, how have they conducted themselves over the last two-three quarters. It is absolutely appalling.
-Udayan Mukherjee, Managing Editor,CNBC TV18
Tracked by: 0 Boarder
I do not believe the content of the letter and feel there will be a denial shortly from Raju. The language, content, financial nos., stamp, sign (initials), sneder fax details, etc. indicate to me atleast, that the letter may turn out to be another PSTL story.
Sharad Rathi
...
In reply to:
Fraud to take Satyam stock to Rs 10: Shankar Sharma
Posted by : MMB Messenger
Shankar Sharma of First Global said Ramalinga Raju’s confession to the fraud in Satyam`s books would have a huge impact on FII and FDI sentiment in India. "An emerging market has to be more careful. We expects the stock to go down to Rs 10-30 levels.
Tracked by: 1 Boarder
Hi Udayan,
You are absolutely to the point in analyzing the Satyam scandal.
Irony is Satyam`s auditors - Price Waterhouse is one the top auditing firm in the world. Its going to have serious reputation damage of sorts for this auditing firm.
Satyam episode is an example of corporat window dressing, which now every investor understands it well. Investors have lost faith in so called global organizations and also top class auditors. Now the question is who is next? Reliance? Hope its not.
Ramalinga Raju should be tried and put behind the bars for shaking up India Inc image in world.
...
In reply to:
Satyam: A cleverly crafted scam
Posted by : Udayan Mukherjee
So even if there is any kind of a modest bounce in Satyam from whatever price level because people believe that the 5,000 crore of cash is still there, there is a big line of people and the Fidelity and Aberdeen’s of the world are not going to stand down with Satyam right now because of whatever cash is lying on its books. They want out and they want out like yesterday.
So this stock now has huge amount of overhead supply which just cannot be absorbed because the number of sellers far outnumbers the number of buyers in Satyam Computers at any price point. So this stock could fall to Rs 10 even if there is cash on the balance sheet because there would be a large number of institutional investors who have completely seen this lie and I do not think that they would want to hang on there at Rs 80-70 because of any kind of cash lying on its books.
This stock’s value despite the cash or the business operations right now is probably in single digit rupees. Nobody trust this, you have just broken down the trust completely, how do you believe a management which just cooked up everything from its balance sheet to its earning statement over the last many quarters and serially quarter after quarter went on national TV and reported to the exchanges one magnificent lie after another. It is just completely preposterous.
Who do you believe now?
Satyam is a company which is listed on the New York Stock Exchange (NYSE); this is an index company, quarter after quarter it announces numbers which we take as gospel and we do a lot of analysis, every analyst does on whether margin slipped a bit and wage hikes happened and now you know that none of those numbers existed then who do you believe?. Do you believe auditors, who are supposed to be looking at these companies?
This is a fundamental issue of trust and faith which has been shaken. One can forget about the Satyam stock much that we feel very bad about Satyam shareholders that is one company. Here you stand the risk of actually losing your faith and trust in the system, which is supposed to be policing the numbers which you have faith and trust in. What happens to the auditors? This is a company which is not a fly by night small company, it is listed on a global exchange, global investor – they are supposed to be following US GAAP norms etc and quarter after quarter they keep blinkering all their investors and none of us find out till the promoter one fine day decides to confess.
Could there be more companies doing these kind of thing? What are the auditors doing? How will we ever know? You and I cannot be looking at going into and checking the bank accounts of Satyam and what they earned in a particular quarter or not. At some level there has to be an implicit code of faith that we believe what is posted on the walls of the exchange but today we cannot. So what are these people doing – these auditors and tax consultants and even rating agencies, how have they conducted themselves over the last two-three quarters. It is absolutely appalling.
-Udayan Mukherjee, Managing Editor,CNBC TV18
Tracked by: 0 Boarder
Shameful act from Raju and aasatyam board. More bubble likely to go burst. ...
In reply to:
Satyam scandal rocks mkts; Sensex down over 700 pts
Posted by : MMB Messenger
The multi-thousand crore Satyam scandal that was uncovered early this morning led to a heavy sell-off on the sectoral indices. The benchmark indices took a heavy knock and witnessed a steep cut. The Sensex fell 755 points to 9,580 and the Nifty lost 192 points to 2,920 (provisional).
Tracked by: 1 Boarder
Firstly I would like to thank to the bottom line of Satyam, who kept the company running.
Satyam is a big fraud. Arrest the auditors also along with Raju. Auditors are the mirror of faith in any company. They certify the balance sheet after observing atleast the Bank Statement. They are talking about Maytas Deal not to make the situation soft, but to cover the scam. Thank god they did not make a deal with another company like Infosys. You know it is like I have acid and let us hug.
I just do not beleive, how the directors of the company were blank. It just cannot happen. It just cannot be a one man show. No one will beleive it.
Satyam should be valued in a couple of days time and the matter should be put in front of the shareholders with immediate effect along with the share valuations.
There is a desperate need to audit the system itself (I mean from Shareholders upto RBI and SEBI) and reframe the constraints wrt formation,audits of the companies and reporting to the government and shareholders. It is a real need of the time. One man cannot take the dreams of shareholders for a ride. What is the system doing ? There is also a need to bring up a rock solid judgements which will justify the shareholders confidence on a ongoing basis. How can Chartered Accounts certify this. It is really really not expected out of professionals like Chartered Accountants. The total system is running on the basis of CA`s. If they are in the crowd of scams, whom will the shareholders look forward ? What is the difference between a Gamble and Satyam ? Is the Industry a Pure Gamble.
I hope the shareholders and the government will decide it in a very short span of time. To conclude, I would like to say that whatever outcome may come, it should be in a position to be beleived, Not only now but always.
...
In reply to:
Satyam: A cleverly crafted scam
Posted by : Udayan Mukherjee
Ramalinga Raju, Chairman of Satyam has resigned from the board, reports CNBC-TV18. In his letter to the board, Raju admitted that the IT major's balance sheet has inflated cash and bank balance of Rs 5,040 crore. "No board member had any knowledge of the real situation. Accrued interest of Rs 376 crore in books is non-existent. Rs 1,230 crore was arranged to Satyam, but was not reflected in the books."
Here is a verbatim transcript of Udayan Mukherjee's comments on CNBC-TV18. Also watch the accompanying video.
On shareholders of Satyam:
It was a very cleverly crafted scam. Not to overstate this because this is one company which has enacted a fraud on its shareholders and board of members, investors large and small but the temptation would be to now extrapolate that and to drive conclusions like the FII will now lose complete faith in every Indian corporate not knowing what to trust because these kind of frauds happen in every country.
So we don’t want to extrapolate this to a very dire situation where Satyam equals many other companies in India and therefore not to believe anything that is reported on the exchanges on a daily basis. That I think would be a complete and gross over reaction. So if you are asking whether this leads to a complete derating of the market, it may happen but it would in my eyes be a very extreme reaction because one bad apple does not mean that everything in the basket is rotten.
Having said that will it shake investor’s confidence? Absolutely and unequivocally yes, more than anything else that has shaken investor confidence. This is not one crooked stock broker scamming investors by leading them up and getting a line of finance from a bank, it is one of the country’s biggest companies; it is an index stock with a several billion dollar marketcap, it was thought just a few months back as one of the beacons of Indian IT and today the promoters come and said, everything that I shared with you was a complete scam. Do you think this will have no repercussions? Absolutely not, that would be too simplistic an inference to draw. I am finding it difficult to articulate what one should after looking at the scale and magnitude of this scam which has played out, where the promoter in five pages has just blown the biggest scam going in this country and has submitted himself to the forces of law.
To think that when the scam actually broke, Ramalinga Raju came on our channel and spoke so eloquently about justifying the Maytas deal, holding everything up. So I think investors would be completely rattled not just in Satyam Computers but in their whole conviction and belief in what numbers are reported because if Satyam can do it, where do you draw the line. So I am completely aghast about what has happened and we should just put out a graphic of the first couple of pages of this confession within quotes.
I really feel sorry for investors like Aberdeen and Fidelity who have picked up, who are sitting on very large chunks of Satyam Computers. We cannot blame them for naively believing the numbers which Satyam kept putting out quarter after quarter but now they are holding stock in a completely dud company – we don’t know what to believe.
No floor for a stock like Satyam:
It is an F&O stock so there cannot be any kind of a circuit filter on that. This is a truly extraordinary circumstance, the promoter has just come in and said that everything was a figment of his imagination, it was a big lie which he enacted and therefore you don’t know how to value this stock anymore.
He still says that there is some cash on the books but the way he has cooked up Q2 accounts which was just reported from 60 crore to 600 crore, you don’t want to believe even his confession what he has put out. So if it was a non-F&O stock maybe there would have been a circuit filter and trade would have got stopped and people would have got some time to analyze it but maybe it is just as well that trade is happening and people who want to get out as they would at this point would want to get out of the stock.
I just feel bad for the guy who does not own 500 shares of Satyam but owns several lakh shares or million shares of Satyam Computers. How does an Aberdeen exit right now and he is a blue-blooded FII who has taken a lot of India bets running a several billion dollar India portfolio. What happens to Fidelity who owns several million shares between various Fidelity accounts probably 9% of Satyam? He cannot sell in the secondary market today and get out for his lot of shares and he would be standing in line at some point to exit.
-Udayan Mukherjee, Managing Editor,CNBC TV18
Tracked by: 0 Boarder
What!!!! Obama\\\\`s USD 800 Bn forthcoming package rally faded away by just small Indian IT scam. Well then what strength & meaning of that big package? What is the use of RBI\\\\`s stimulus packages, rate cuts? I think Indian investors fear more than usual. I think market to rebound strongly tomorrow with same intensity. Seeing sensex close to 10k tomorrow....
In reply to:
Satyam scandal rocks mkts; Sensex down over 700 pts
Posted by : MMB Messenger
The multi-thousand crore Satyam scandal that was uncovered early this morning led to a heavy sell-off on the sectoral indices. The benchmark indices took a heavy knock and witnessed a steep cut. The Sensex fell 755 points to 9,580 and the Nifty lost 192 points to 2,920 (provisional).
Tracked by: 0 Boarder
The multi-thousand crore Satyam scandal that was uncovered early this morning led to a heavy sell-off on the sectoral indices. The benchmark indices took a heavy knock and witnessed a steep cut. The Sensex fell 755 points to 9,580 and the Nifty lost 192 points to 2,920 (provisional)....
Tracked by: 1 Boarder
today stock went down just like the company itself has finished.........
wow , a letter writen by one person can do that to a company.....
it`s a matter of 9000cr of balance sheet cash money......no body so far even try to check that the details given by Raju in his letter are ACTUALLY TRUE OR NOT.....
has any body goes to their respected banks yet to find out has the bank a/c are ARCTUALLY nill or Raju is just playing his last trick by writing over agreesive letter to bring some final benifites out of market before quiting.....
how can everybody jumping to the conclusion that all that he written in his letter is actually true before the facts are first examine.....
...
In reply to:
Satyam: A cleverly crafted scam
Posted by : Udayan Mukherjee
Ramalinga Raju, Chairman of Satyam has resigned from the board, reports CNBC-TV18. In his letter to the board, Raju admitted that the IT major's balance sheet has inflated cash and bank balance of Rs 5,040 crore. "No board member had any knowledge of the real situation. Accrued interest of Rs 376 crore in books is non-existent. Rs 1,230 crore was arranged to Satyam, but was not reflected in the books."
Here is a verbatim transcript of Udayan Mukherjee's comments on CNBC-TV18. Also watch the accompanying video.
On shareholders of Satyam:
It was a very cleverly crafted scam. Not to overstate this because this is one company which has enacted a fraud on its shareholders and board of members, investors large and small but the temptation would be to now extrapolate that and to drive conclusions like the FII will now lose complete faith in every Indian corporate not knowing what to trust because these kind of frauds happen in every country.
So we don’t want to extrapolate this to a very dire situation where Satyam equals many other companies in India and therefore not to believe anything that is reported on the exchanges on a daily basis. That I think would be a complete and gross over reaction. So if you are asking whether this leads to a complete derating of the market, it may happen but it would in my eyes be a very extreme reaction because one bad apple does not mean that everything in the basket is rotten.
Having said that will it shake investor’s confidence? Absolutely and unequivocally yes, more than anything else that has shaken investor confidence. This is not one crooked stock broker scamming investors by leading them up and getting a line of finance from a bank, it is one of the country’s biggest companies; it is an index stock with a several billion dollar marketcap, it was thought just a few months back as one of the beacons of Indian IT and today the promoters come and said, everything that I shared with you was a complete scam. Do you think this will have no repercussions? Absolutely not, that would be too simplistic an inference to draw. I am finding it difficult to articulate what one should after looking at the scale and magnitude of this scam which has played out, where the promoter in five pages has just blown the biggest scam going in this country and has submitted himself to the forces of law.
To think that when the scam actually broke, Ramalinga Raju came on our channel and spoke so eloquently about justifying the Maytas deal, holding everything up. So I think investors would be completely rattled not just in Satyam Computers but in their whole conviction and belief in what numbers are reported because if Satyam can do it, where do you draw the line. So I am completely aghast about what has happened and we should just put out a graphic of the first couple of pages of this confession within quotes.
I really feel sorry for investors like Aberdeen and Fidelity who have picked up, who are sitting on very large chunks of Satyam Computers. We cannot blame them for naively believing the numbers which Satyam kept putting out quarter after quarter but now they are holding stock in a completely dud company – we don’t know what to believe.
No floor for a stock like Satyam:
It is an F&O stock so there cannot be any kind of a circuit filter on that. This is a truly extraordinary circumstance, the promoter has just come in and said that everything was a figment of his imagination, it was a big lie which he enacted and therefore you don’t know how to value this stock anymore.
He still says that there is some cash on the books but the way he has cooked up Q2 accounts which was just reported from 60 crore to 600 crore, you don’t want to believe even his confession what he has put out. So if it was a non-F&O stock maybe there would have been a circuit filter and trade would have got stopped and people would have got some time to analyze it but maybe it is just as well that trade is happening and people who want to get out as they would at this point would want to get out of the stock.
I just feel bad for the guy who does not own 500 shares of Satyam but owns several lakh shares or million shares of Satyam Computers. How does an Aberdeen exit right now and he is a blue-blooded FII who has taken a lot of India bets running a several billion dollar India portfolio. What happens to Fidelity who owns several million shares between various Fidelity accounts probably 9% of Satyam? He cannot sell in the secondary market today and get out for his lot of shares and he would be standing in line at some point to exit.
-Udayan Mukherjee, Managing Editor,CNBC TV18
Tracked by: 1 Boarder
As usual the media would only point fingers at others with so much intensity and noise to hide themselves behind it and create another advantage to themselves. Wasn`t it the same media that praised their growth and strategy and applauded their Governance just a while back? Wasn`t it part of the craft?...
In reply to:
Satyam: A cleverly crafted scam
Posted by : MMB Messenger
Ramalinga Raju, Chairman of Satyam has resigned from the board, reports CNBC-TV18. In his letter to the board, Raju admitted that the IT major`s balance sheet has inflated cash and bank balance of Rs 5,040 crore
Tracked by: 0 Boarder
Sebi has to dig companies which have promoters holdings is less than 50% and controlled by them....
In reply to:
Fraud to take Satyam stock to Rs 10: Shankar Sharma
Posted by : MMB Messenger
Shankar Sharma of First Global said Ramalinga Raju’s confession to the fraud in Satyam`s books would have a huge impact on FII and FDI sentiment in India. "An emerging market has to be more careful. We expects the stock to go down to Rs 10-30 levels.
