Further opinion on Satyam: You are right and I agree with you on the over-reacting on Satyam. Usually markets over react to bad news. Delisting of ADRs is in fact a good strategic move by the company to reduce law suits from US clients.
One thing I will be silent on will be a further visibility beyond a price of 130 (you have mentioned 200) because unless the results are stated, we will not know how much liabilities is currently owned by the company. Earning well is just not enough. If Satyam is earning Rs 20 per month and spending Rs 19 every month on settling law suit claims, markets will not respond to Satyam till all law suits are cleared. And usually, when law suits start to settle, a few other law suits get opened.
On Sun, Sep 26, 2010 at 1:29 PM, _____ wrote:
On Sun, Sep 26, 2010 at 1:29 PM, _____ wrote:
I think people are overreacting to the delisting of the ADRs from NYSE.
It is going to be still traded in the NASDAQ OTC. Hopefully the Sep 29 results will show a better picture of the financials. I think the stock will reach 200-220 in the long term.
Thanks for all your helpful insights on this.
Cheers
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