About Me
- dharma
- I believe in "Baptism by fire" that will transform me from an average joe to a true blue bee's knees in corporate finance and investment banking
Thursday, January 08, 2009
How "Satyam" (Truth) got reversed through Maytas
Satyam's net worth is only 1600 crore adjusting for the inflated profits and the resultant book value works to Rs.25 per share. But whats more appalling is that Satyam was making only 3% at the operating margins level. So this raises a pertinent question as to whether thats the water mark level for the industry as a whole..are all the acounts of IT cos fudged to show or prop up numbers. Is this a real cash cow or a sunrise sector as ballyhooed by the industry experts...have we been buying into a sham story for such a long time? Only time will tell the real saga. But markets can be trusted on their actions, they never lie and it wasnt a coincidence that infosys closed in the green yesterday inspite of the sensex tanking 759 points. Thats a thought worth pondering upon
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3 comments:
"The markets probably never lie,..but the companies might."
This is the "Satyam" we have come to know from the story so far.
I think there is a growing disbelief and loss of trust in the stock market as a platform for investments within the investment community. Going by the press/blogs/forums, and their views or immediate reactions to this event, this is an aspect which is not being talked about. "Very few people will trust the corporate world with their money. They will grow increasingly suspicious about the companies listed on the stock exchange and therefore shy away from putting their money into this gambling hotspot."
But be it the markets or be it the economy...they have always recovered from scams..we had the enron in 2000, world com and markets have moved on...one can never replace equities as the best return yielding aset in the long run...an investor has to exercise his discretion by investing in quality enterprises with good corporate governance
But be it the markets or be it the economy...they have always recovered from scams..we had the enron in 2000, world com and markets have moved on...one can never replace equities as the best return yielding aset in the long run...an investor has to exercise his discretion by investing in quality enterprises with good corporate governance
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