Charlie Bottle

Who Will Benefit from Saytam's Failure?

Hamilton, you're correct again. The historical earnings are probably correct, Satyam's profit margins are in line with competitors, the main accounting issue is the missing (i.e. stollen $1 Billion US). Satyam's profit margins are in line with competitors. No doubt the scandal has damaged the franchise but this was a 10 billion market cap company now trading at few hundered million. Given that the company does not have very large liabilities they ought to be still solvent provided they can meet their short term liquidity needs.

Who Will Benefit from Saytam's Failure?

Hamilton,

Good thinking -i'm with you on that one in the sense I think that this is more about theft than accounting fraud/inflating the books. However in the current climate with lack of liquidity, ad an highly politicized environemtn not clear the company can actually recover. It is still a good risk/reward play though.