Posted by: Babu Suresh | January 7, 2009

Satyam Fiasco

This day, the 7th of Jan.09 will never be forgotten in the history for, the unprecedented events of the day brought in inexplicable shame and tarnished our country’s only corporate image along with immeasurable losses to our friends.

Although I personally avoid trading IT stocks, I seldom or ever recommend them after taking due care. Since last week I have been warning to everyone in my circle to stay out of Satyam as series of bad news were emerging on a regular basis. I have also been discussing the same with one of our friends in my Traderji’s “Profitable Day Trading Techniques” thread.

I don’t intend to do post-mortem on what has happend because, in stock market dictionary, phrases like, “would have been, could have been, should have been” do not present.

Since Monday, I have been advising my circle to book profit on all their overnight positions and keepy away for some time as a correction is due. But to my shock, today I have been getting series of calls asking about what to do with satyam.

Just to share with you, I don’t watch TV during market hours. I don’t need one. When satyam nose dived, out of curiosity, I checked online news sites and was horrified to read the developments.

The only consoling factor in this case unlike the past cases where, our NBFCs-Benefit Funds, Chit Funds, Finance & Plantation Companies which went away with 100s of thousands of crores, Mr. Raju had admitted the truth. The only difference between then and now is, CNBC, NDTV, etc. were not there.

My only advise to our devastated friends, gather your strength and wits and try to conisder your losses as bad investment and prepare yourself for the next phase.

Healthy And Wealthy Trading.

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