Satyam has support at Rs 48: Sukhani Technical Analyst, Sudarshan Sukhani is of the view that Satyam has support at Rs 48.. Sukhani told CNBC-TV18, “Satyam has given us some kind of a support. So, anyone who says, I believe in this news and I want to go long in Satyam can have a stoploss of Rs 48. Earlier, we did not have an exit strategy, so just entering this stock without knowing how to get out was dangerous. But now there is a decent amount of support at Rs 48, if that breaks something has gone wrong, now it is difficult to say whether it will go up because a lot of this is new driven but long position can be taken with that exit in mind.”
Showing posts with label Satyam. Show all posts
Showing posts with label Satyam. Show all posts
Wednesday, February 4, 2009
Monday, January 12, 2009
Govt may provide financial support to Satyam
New Delhi: The Central government's help to the crisis-ridden Satyam Computer Services may include financial support as well, as it is a question of saving jobs and institutional investment, Commerce and Industry Minister Kamal Nath said.
He said the government will consider 'all aspects' in helping the troubled IT company, "once it receives firm proposals from the newly constituted board".
Yesterday, the government constituted a three-member board comprising noted banker Deepak Parekh, IT expert Kiran Karnik and ex-SEBI member C Achutan.
More appointments have been made today. According to the Company Law Board's order, the reconstituted board of the IT major can have a maximum of 10 members.
The government on Friday sacked the board of Satyam a few days after its founder-chairman B Ramalinga Raju admitted to a Rs 7,800-crore fraud in the books of accounts of the IT company.
When asked whether the government will consider financial help, Nath said, "Of course. There are many jobs at stake and institutional stakes."
He said now it was up to the board to come up with proposals.
Board to bring in new mgmt; address liquidity crisis
Swinging into action on the very first day of taking charge of the scam-tainted Satyam, its new board today announced that top management would be changed and every effort made to address the prime concern of liquidity, including asking main clients to make advance payments.
Announcing the decisions taken at the meeting of the three-member board constituted by the government, member Deepak Parekh said new CEO and CFO would be appointed, while government would soon fill up vacancies at the board that would later elect a chairman.
The board would ask the clients to pay advance against dues to tide over immediate liquidity needs. Noting that there was a large number of receivables - payments due from clients - Parekh said: "If (the receivables) come on time liquidity will be sufficient. But these need to be authenticated...
"Most of the clients are 'AAA' (top investment grade rated). So we can ask them for advance against receivables," Parekh said and added that the board has identified two independent accounting firms and they are likely to make their proposals on Tuesday.
Within 48 hours, a new independent accounting firm will be in place to look at the third quarter financial performance of the company, for announcement of which the board is seeking extension beyond scheduled January 16.
"Working capital needs immediate attention," Parekh said, but added that the board has not yet determined the amount of liquidity that is required.
Asked whether the new CEO and CFO would be from the internal team, Parekh said he hoped that in the next few weeks the board would find someone. But given the situation it would be difficult to find willing candidates.
Source: www.mid-day.com
He said the government will consider 'all aspects' in helping the troubled IT company, "once it receives firm proposals from the newly constituted board".
Yesterday, the government constituted a three-member board comprising noted banker Deepak Parekh, IT expert Kiran Karnik and ex-SEBI member C Achutan.
More appointments have been made today. According to the Company Law Board's order, the reconstituted board of the IT major can have a maximum of 10 members.
The government on Friday sacked the board of Satyam a few days after its founder-chairman B Ramalinga Raju admitted to a Rs 7,800-crore fraud in the books of accounts of the IT company.
When asked whether the government will consider financial help, Nath said, "Of course. There are many jobs at stake and institutional stakes."
He said now it was up to the board to come up with proposals.
Board to bring in new mgmt; address liquidity crisis
Swinging into action on the very first day of taking charge of the scam-tainted Satyam, its new board today announced that top management would be changed and every effort made to address the prime concern of liquidity, including asking main clients to make advance payments.
Announcing the decisions taken at the meeting of the three-member board constituted by the government, member Deepak Parekh said new CEO and CFO would be appointed, while government would soon fill up vacancies at the board that would later elect a chairman.
The board would ask the clients to pay advance against dues to tide over immediate liquidity needs. Noting that there was a large number of receivables - payments due from clients - Parekh said: "If (the receivables) come on time liquidity will be sufficient. But these need to be authenticated...
"Most of the clients are 'AAA' (top investment grade rated). So we can ask them for advance against receivables," Parekh said and added that the board has identified two independent accounting firms and they are likely to make their proposals on Tuesday.
Within 48 hours, a new independent accounting firm will be in place to look at the third quarter financial performance of the company, for announcement of which the board is seeking extension beyond scheduled January 16.
"Working capital needs immediate attention," Parekh said, but added that the board has not yet determined the amount of liquidity that is required.
Asked whether the new CEO and CFO would be from the internal team, Parekh said he hoped that in the next few weeks the board would find someone. But given the situation it would be difficult to find willing candidates.
Source: www.mid-day.com
Wednesday, December 17, 2008
Satyam calls off Maytas deal
HYDERABAD: Even as Satyam's deal to buy Maytas had to be hastily annulled in the wee hours of Wednesday morning as the company lost 52% on its ADR listed on the New York Stock Exchange (NYSE), a credibility crisis has begun to grip India's fouth largest IT company. "How can we trust the management of this company and its board of directors after it tried to enter into a deal that prime facie would benefit only the promoters who just own 8% of Satyam ? We have to examine whether the management needs to be changed," cried analysts in a reflection of the deep anguish caused by the now stymied move.
"We have decided not to move ahead with the acquisition in deference to the investment community's views," said Satyam in a SMS sent out at 3-45 am on Wednesday clearly shaken by the reaction on the US bourse of its move anounced barely 10 hours ago.
But this was clearly not enough to save the company: Satyam's stock tanked on the Indian bourses by 30%, even after the company announced its decision to go back on the deal. "The deal was seen as Satyam buying into companies owned by its family members. Cash from a company where the Raju family owns 8% was being transferred to a company where they hold more than 35%. This is what investors are resenting. Its become a corporate governance question. Whether the company can be trusted in future to take a proper decision is the moot issue," pointed out another analyst. Satyam's scrip closed at Rs 158.05 which is a 52 week low.
"58% of Satyam is owned by FIIs and they had no inkling that such a deal was in the works. There were questions about the future of Satyam after acquiring these companies when it doesn't have any experience in these businesses. It makes more sense to deploy your funds in related businesses or pay your investors," said Sourav Mahajan, analyst with Karvy.
Moreover, what irked investors was as to how Satyam decided to pay Rs 6,500 crore ($1.3 billion), just for Maytas Properties' assets, a land bank of 6,800 acres valued at almost Rs 1 crore per acre. "It is not easy to value real estate in this falling market. So there are questions on the valuation of the acquisition," said Monotosh Sinha, executive director of Centrum Capital.
Later in the day as the company started a firefighting exercise Satyam's chief financial officer (CFO), Srinivasa Vadlamani told TOI: "We never anticipated this reaction. We underestimated it. We thought we could manage it." He also indicated that the deal had been on the table for the last few months claiming that for starters many other companies were looked at for being acquired. But the choice fell on Maytas Properties because it was zero debt unlike other companies that were in the consideration zone.
"As for Maytas, it had cash on its books. So, it was a judgement call and sometimes some judgements do not turn out to be good," Ram Mynampati, president of Satyam and a board member tried to impress.
Source: http://timesofindia.indiatimes.com/
"We have decided not to move ahead with the acquisition in deference to the investment community's views," said Satyam in a SMS sent out at 3-45 am on Wednesday clearly shaken by the reaction on the US bourse of its move anounced barely 10 hours ago.
But this was clearly not enough to save the company: Satyam's stock tanked on the Indian bourses by 30%, even after the company announced its decision to go back on the deal. "The deal was seen as Satyam buying into companies owned by its family members. Cash from a company where the Raju family owns 8% was being transferred to a company where they hold more than 35%. This is what investors are resenting. Its become a corporate governance question. Whether the company can be trusted in future to take a proper decision is the moot issue," pointed out another analyst. Satyam's scrip closed at Rs 158.05 which is a 52 week low.
"58% of Satyam is owned by FIIs and they had no inkling that such a deal was in the works. There were questions about the future of Satyam after acquiring these companies when it doesn't have any experience in these businesses. It makes more sense to deploy your funds in related businesses or pay your investors," said Sourav Mahajan, analyst with Karvy.
Moreover, what irked investors was as to how Satyam decided to pay Rs 6,500 crore ($1.3 billion), just for Maytas Properties' assets, a land bank of 6,800 acres valued at almost Rs 1 crore per acre. "It is not easy to value real estate in this falling market. So there are questions on the valuation of the acquisition," said Monotosh Sinha, executive director of Centrum Capital.
Later in the day as the company started a firefighting exercise Satyam's chief financial officer (CFO), Srinivasa Vadlamani told TOI: "We never anticipated this reaction. We underestimated it. We thought we could manage it." He also indicated that the deal had been on the table for the last few months claiming that for starters many other companies were looked at for being acquired. But the choice fell on Maytas Properties because it was zero debt unlike other companies that were in the consideration zone.
"As for Maytas, it had cash on its books. So, it was a judgement call and sometimes some judgements do not turn out to be good," Ram Mynampati, president of Satyam and a board member tried to impress.
Source: http://timesofindia.indiatimes.com/
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