Saturday, February 21, 2009

satyam

Satyam has been cleared and now an offer for sale would be made soon. There are already a few parties like L&T, spice and the hinduja group eyeing for it. When the actual sale of the company is done we may witness a few more companies and some surprise entries going for the bid.

So what is there for the investors. Is this the right time to invest in this stock. Probably yes. Over the last few days we have seen the price of this stock falling, but this wont be for long. However investing on this stock is a risk. Many companies would be intrested in buying this company purely because its valuations have decreased greatly in a couple of months. Finally at what price does the other company buys satyam is what we have to look at. Since the stock has been trading at an average price of 40 over the last few months the bidding for this company would start at this level.

However, I doubt if the company would be sold off anytime soon. This means, it would be better to look at other stocks rather than park your funds with this share. Instead if the offer for the same of the company is made anytime soon you may end up getting very good returns. So would go for it or not ...?

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