powerfulpicks call update: On Sep 13, when Satyam was at around 90, I had written the below note to the group and had mentioned Satyam should be back to 130, as per my valuation calculations. Satyam is currently 12% up at 107 and had touched 123.30 today.
Some of you would have made good profits in Satyam. To be on the safe side, book 50% profits now and hold the remaining till the outcome of the board meeting on Sep 29.
From: powerfulpicks@yahoogroups.co.in [mailto:powerfulpicks@yahoogroups.co.in] On Behalf Of powerfulpicks
Sent: Monday, September 13, 2010 7:56 AM
To: powerfulpicks@yahoogroups.co.in
Subject: [pp] [powerfulpicks] Expect Mahindra Satyam to report decent numbers on Sep 30
I expect Mahindra Satyam to post moderately good results on Sep 30 and the market to react favorably, if not excitedly.
Another of my recent assessment on Mahindra Satyam (MS) reads as: powerfulpicks stock assessment: "Fundamentally, MS should be really be trading around 130. But the continuous postponement of result declarations and ongoing scam investigations have held the stock back. Earlier, Tech Mahindra has decided to publish its results alone, without quoting Satyam (MS) numbers in their balance sheet.
Technically, the stock looked quite weak on the chart after a good move to around 94 levels in mid-June 2010 and as I had predicted, towards the end of August 2010, it had corrected to below 80 and then pulled back to near 94, as I had expected.
Long term investors should hold on at least for a year to see how the sports vertical story increases the topline. Satyam needs to form a base above 100 for further up move. We cannot ignore the fundamental strength of the company to still produce good results and profits. Nor can we ignore that the script is under-valued, in fact quite cheap. Satyam did not get back any of the large clients it had lost due to the scam, but in the troubled times too, they have added 54 new mid-sized clients since the beginning of 2010"
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