Question: I purchased Satyam 500 nos. @ 80.30 as you suggested. Do I have to average it @ present rate of 69 or still it will go down. Best Regards, Ashutosh Nema.
Nov 22: Satyam Computers is currently at 69 and can slip down a bit further to around 60. So one may average a bit now and do the serious averaging between 58-60. Satyam Computers should be trading around 92-93 in 8-9 months from now, a 33% gain over current market price. The same thing had happened with Renuka Sugars; when everyone had written off Renuka Sugars around 60-63, I had given a buy call at that price, but Renuka hardly moved for the next 1 month. And then it went to touch almost 110, a 80% rise in just 4.5 months.
Earlier powerfulpicks opinion (Nov 16): Satyam's results are consistent and not bad at all...they have a lot of rebuilding to do and they are continuing to do so, retaining talents, hiring people with lower drain on salary expense and trying to groom and empower them...Satyam will internally consolidate and come out stronger. As I have said before: Hold Satyam from a long term perspective of 15-18 months and if you have invested around 80-85, you should get to see good returns, when the script climbs back to 120+ levels.
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