No time for discussion, as I’m out the door, but this is important:
The chairman of India’s Satyam Computer Services Ltd. quit Wednesday after admitting the company’s profits had been doctored for several years, shaking faith in the country’s corporate giants as shares of the software services provider plunged nearly 80 per cent.
- It’s important because Satyam is a big name in India.
- It’s important because it’s only in a deteriorating market environment that all the corruption and lies come out. Something tells me there’ll be more of this going forward from Asia — especially China.
- It’s also important because the Indian stock market is dominated by foreigners. I don’t know the exact number right now, but memory tells me that more than 80% of the Indian market is owned by foreign investors. It’s like a giant game of of chicken — foreigners tend to think alike — so it’s led to some pretty wild one-day swings in the past. (circa 25% if memory serves correct).
- Satyam closed down 80%; I’m actually impressed that the market only fell 7%. Watch this space.
5 comments
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January 7, 2009 at 12:32 pm
Karma
LOL HAHAHHAHA Serves them right. American companies sending jobs overseas and paying the price. I love it. I refuse to do business with any company that outsources our IT jobs.
January 7, 2009 at 1:15 pm
Truth comes out
The Indian IT consultants cannot be trusted with company assets. Some are good, most are not.
January 7, 2009 at 6:35 pm
Guest
Never trust a chairman named Ramalinga.
Sounds too much like:
“Oo ee, oo ah ah, ting tang, walla walla bing bang.”
March 9, 2009 at 4:43 pm
Ginabina
I miss this site. When will you blog again?
March 9, 2009 at 4:53 pm
Truth or Talk
Hi Gina,
Haven’t been feeling all that inspired to write in recent months as I don’t have much value to add: investors eyes have already been pried open. That and the fact that I have had my attention diverted by some personal matters — which thankfully have nothing to do with the market.
The only area where I think people are still missing the mark is Canadian bank stocks and in particular Toronto property, where I still think there could be considerable downside. After all, if commodity prices and stock prices are back to where they were 5+ years ago, why is property only at 2007 levels?