Satyam Fraud Everyone shocked, Bigger question What about other indian companies?
Well its not over yet..Now by the time im posting it here everyone knows that satyam has committed a fraud as confessed by Ramalinga Raju. But the problem here now is that
What about the IT sector as a whole?
What about the investors confidence of people on Indian companies?
Apart from that big question which arise from the confession that if they actually dont have any cash on the balancesheet then how could they have bailed out Mytas Infra. Thats the main stage by which this satyam saga was all started. and people seemed to have forgotten that. If thats true then it means that Mytas infra knew evey thing about satyams balance sheet fraud. So now what about the creditablity of Mytas Infra.??
Another thing is if there was no cash on the balance sheet how could satyam board actually declared that they would have a buy back?
There are so many other question arising out here. Also the letter given to sebi
Another question which arise is that as mentioned that they had only 3% margins. Now if a company like Satyam has 3% margins then how come other IT companies showing 30% margins?
What about the shareholders?
Talking about share holders i think they should just forget the investment made into the counter. Only the fools will even think of averaging out the stock and they will suffer. I still see people asking if they could buy this stock. And I would suggest them not to even think of putting a single rupee in the counter. If they put any they are surely going to suffer. Dont even think of short selling the counter. Just aviod trading it.
FII holding 46% share in satyam
Now here is one more question should we invest in companies where there is a lot of FII holding? Are their investments reliable? On what basis they make investmenet? How do they research? Simply on what company tells them?
Lot many questions coming in my mind currently. I will keep on posting my views and things that should be watched out for. you can discuss here by posting ur comments on this discussion