Breaking News- Short Satyam Inc. (nyse:say) Biggest Scam In Indian Corporate History

MaxNewYork · Jan 7, 2009

The news is still developing. Chairman RAMLINGA RAJU of SATYAM COMPUTER SERVICES

Satyam Computer (ADR)
(Public, NYSE:SAY)

HAS REPORTED biggest scam in Indian corporate history.

STock is already down by 45% IN LAST 20 MINTUES IN INDIAN MARKETS.

SHORT IT AS US MARKET OPENS.

JUST SHORT TRUST ME YOU WILL BE REWARDED. THE COMPANY IS GONE.

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stopk down 55% as i type in indian markets.

damn, i missed it, it was like 100% return in just 10 minutes.

Raju admits fraud; Satyam books inflated by Rs 5040cr

http://www.moneycontrol.com/india/news/business/ramalinga-raju-resignssatyam-board/375049

Ramalinga Raju has resigned from the Satyam board, reports CNBC-TV18. Raju wrote a letter to the board giving balance sheet details. Satyam said that the balance sheet has an inflated cash and bank balance of Rs 5040 crore. Satyam added that no board member had any knowledge of the real situation as against the books. Accrued interest of Rs 376 crore in books is non-existent.

Satayam further said that Rs 1230 crore was arranged to Satyam but was not reflected in the book

HERE IS SATYAM ADR ON YAHOO FINANCE

http://finance.yahoo.com/q?s=SAY

HERE IS STYAMS ONE DAY GRAPH IN INDIAN MARKET

http://finance.yahoo.com/q/bc?s=SATYAMCOM.NS

MaxNewYork · Jan 7, 2009

NOW ITS DOWN BY 70%

4444CJones4444 · Jan 7, 2009

What happened Dec 16 when SAY gapped down 55%?

That was after the Oct slaughter and another 50% drop. SAY has had a rough couple months, no? Is it even available to short?

MaxNewYork · Jan 7, 2009

I HAVE ALSO POSTED THIS THREAD IN STOCK FORUMS here

http://www.elitetrader.com/vb/showthread.php?s=&postid=2249419#post2249419

REQUEST TO MODS, please merge this thread in STOCKS or TRADING FORUMS as you feel appropriate. I apologies for 2 threads.

MTE · Jan 7, 2009

Quote from 4444CJones4444:

What happened Dec 16 when SAY gapped down 55%?

That was after the Oct slaughter and another 50% drop. SAY has had a rough couple months, no? Is it even available to short?
More...

The reason it fell the first time is that the company announced a plan to spend $1.6 billion to buy a couple of building companies.

MaxNewYork · Jan 7, 2009

Quote from 4444CJones4444:

What happened Dec 16 when SAY gapped down 55%?

That was after the Oct slaughter and another 50% drop. SAY has had a rough couple months, no? Is it even available to short?
More...

on Dec 16 Raju (promotor) purposed to buy huge stake in is brother in law's company by using satyam's money which disappointed investors and they dumped stock but then he withdrawn proposal and stock slowly started going up.

http://www.channelregister.co.uk/2008/12/18/takeover_abandoned/

IT services giant Satyam has abandoned the takeover of two Indian building groups after investors reacted with horror to the proposal.

Satyam shares fell over 30 per cent on the Indian stock exchange and more than 50 per cent in New York after it said it would pay $1.6bn for 100 per cent of Maytas Properties, which develops new towns, hotels and retail spaces, and for a 51 per cent stake in Maytas Infra which builds roads, railways, water treatment plants and other infrastructure projects.

The plan was diversify out of IT services as well as adding a new business vertical in which to sell such services. But yesterday Satyam said it was abandoning the plan after the hugely negative response from investors.

B. Ramalinga Raju, Satyam Chairman, said, âWe have been surprised by the market reaction to this decision even though we were quite positive about the merits of the acquisition. However, in deference to the views expressed by many investors, we have decided to call off these acquisitions.â

Part of the problem with the deal was that, despite claims from Satyam that it followed exacting corporate governance rules, Raju's sons have senior posts in both firms - Rama Raju Jnr is vice chairman of Maytas Properties and B Teja Raju is vice chairman of Maytas Infra. Â®
More...

MaxNewYork · Jan 7, 2009

Here is bloomberg news

http://www.bloomberg.com/apps/news?pid=20601080&sid=a37YOX1irBus&refer=asia

Jan. 7 (Bloomberg) -- Satyam Computer Services Ltd. Chairman Ramalinga Raju resigned after saying he falsified accounts and assets, sending shares of the Indian software services provider to a record decline.

Raju, 53, unsuccessfully tried to sell two companies to Satyam last month in a final attempt to plug 50.4 billion rupees ($1.04 billion) of âfictitious assetsâ on the companyâs balance sheet, Hyderabad-based Satyam said in a statement today. Profits from the main business have been inflated âover a period of last several years,â Raju said in a letter to the board.

âNon-Existentâ

Of the reported cash and bank balances of 53.61 billion rupees on Sept. 30, 50.4 billion rupees was non-existent, Raju said in the letter sent to the Bombay Stock Exchange.

Operating margin at Satyam, Indiaâs fourth-largest software exporter, in the quarter ended Sept. 30 was 3 percent of revenue, instead of the reported 24 percent, Raju said in the letter. The companyâs revenue was 21 billion rupees, 22 percent less than the inflated figure of 27 billion rupees that had been reported.

Raju arranged 12.3 billion rupees âto keep operations goingâ at Satyam over the last two years by pledging the foundersâ shares and raising funds from other sources, he said.

âWhat started as a marginal gap between actual operating profit and the one reflected in the books of accounts continued to grow over the years,â Raju said. âIt was like riding a tiger, not knowing how to get off without being eaten.â

âEasy Targetâ

The foundersâ concern was that a poor performance, combined with the fact they held a small stake in the company, would make Satyam an easy target for a takeover, exposing the inflated figures, he said.

Satyam yesterday denied a report that the company received a merger offer from Tech Mahindra Ltd., an Indian software-services provider controlled by Mahindra & Mahindra Ltd. and partly owned by BT Group Plc.

Tech Mahindra termed the report of a proposed all-stock merger as âspeculative.â
More...

murray t turtle · Jan 7, 2009

Max;
On Satyam, they crushed that one like an elephant sat on a yam

Div_Arb · Jan 7, 2009

SAY it ain't so, Joe!

MrDODGE · Jan 7, 2009

There are many more to come....