Dear members,

Satyam

Its already well known Satyam fraud. Now the future of company looks very trouble. There is no doubt about lower levels unless positive news comes. This company cannot stand without help of positive developments like merger or take over, because the trust is already gone, so not only existing clients will stop service from Satyam but also no new contracts will be given from new companies also. We expect some thing like this will happen in coming days, it will not help coming to positive mode as far as stock price is concerned but at least employees will have safety.

As far as investor considered clearly indicating stay away or exit from this counter.

Its not new Fraud

It may be new to people but this type fraud technique is present in companies but the important factor is companies never let such high manipulation by reducing it in next quarter. Reason for this fraud can be status, some times for loan,existence they may force to do. According to us we cannot trust that only one board member known this issue. It is also making suspicious about auditor PWC.

Impact

Its impact will be more tough rules for companies more over FII and FDI sentiment will affect at least short term. It will make them more selective and more investigative.

More over we were been expecting Sensex to reach 11000-12000, now new development making it looks very difficult.

Lesson

It proves there is always risk in all companies, except for government owned companies. In future even government owned companies also will have same risk due to globalization.

Happy Trading,

Neeraj M S

Mathruppillil(H),

Thrissur (Dist),

Kerala.

E-mail: neerajms@...

Web Site: www.lakshmistockgroup.com

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