Thursday, September 30, 2010

Does it make sense to buy Mahindra Satyam?

Most of the people would like to know the answer to this.
We now have the results in front of us.

Folks who were positive are still positive and hoping for better results in November.

My take:
- The results are out
- The stock tanked
- ADRs of the stock is going down (and ADRs will be delisted but available over-the-counter)

Speculation:
- Good results in November
- Tech mahindra to merge into Satyam
OR
- Satyam to merge into Tech Mahindra on a good merger ratio.

I would not advise to go with speculation.
If you haven't burnt your hands with RPL/RIL and/or RNRL/Rpower merger, thank the lord that you are one of the lucky ones.

Lets see the results and merger news.

If the merged entity has to grow, entry point for a long term investment will always be there.

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