Experts speak on Satyam Disaster

Sid John January 07, 2009

As we all know about the Satyam Fraud, here is what experts have to say on the hot topic of the day.

Shankar Sharma of First Global predicts the stock price going to zero levels, "probably by the next trading session because there is still 100% to be lost even from these prices. I firmly believe that no company in its right senses will want to go and take a look at its books, or try and look at it as an acquisition candidate because it is a loss-making company."

According to Ganesh Natarajan, Chairman, NASSCOM, "Satyam is still a good company if you trim the company a little, salvage the customers’ expectations and the customers’ projects."

Ramesh Damani, Member, BSE said "I agree with Shankar Sharma that someone could bottom fish and make a few bucks on Satyam but it is pointless. But I disagree with him on the stock going to zero because for some reason in India, stocks don’t go to zero even when the companies go bankrupt, even when they languish for years."

Overall, there are lots of negative reactions by the esperts related to this stock. The stock prices are set at 39.95 down about 77.69% in a single day of trading. According to me, it would be interesting to see how the stock performs after a week or so, till which the stock is lkely to remain in red. The worst is not yet over!

Reference taken from www.moneycontrol.com