Stuck in Satyam !!

POSTED BY annu707in ON August 17, 2012 11:11 am COMMENTS (11)

Dear Experts – On 02/02/2010, I bought 200 shares of Satyam @ 103. After that it kept hovering aroud 50 – 60- 70 levels, but now I can see the rate is around 97.

Please advice should I sell my holding of 200 shares now and book Rs 1200 something loss or should I wait for somemore time to hit my buy levels?

Kindly advice. Many thanks in advance.

Regards,

Anurag

11 replies on this article “Stuck in Satyam !!”

  1. annu707in says:

    Thanks once again Sekhar for your views and advice.

  2. somasekhararaom@gmail.com says:

    Dear Anu,

    Nice to hear that you didn’t make any loss on your portfolio. But still you are in loss because your returns are just 4% per Annum, So keep going on with this stock.

    Markets may touch 20K within few months if Govt can pass all bills ( Pension, Insurance…. etc ) in parliament’s winter season. So don’t sell any stock if you hold. But expect some correction in Satyam due to strong Rupee by inflow of Dollars from FII.

    I don’t suggest any stocks in this overbought market. But if you are good at trading, then buy Gold & Crude at this levels.

    Commodities — Present Price — Target Price

    Crude Oil — 4620 — 4800

    Gold —- 30910 —– 32000

    Crude oil now trading near to all time low (4500). So you can buy now. This will bounce back if it find any good news. Obama is next President of USA. So that would be good news for India & Markets across world except China. If China is in trouble, then that would be good news for India.

    We can buy gold at this level bcoz next month, we have an event: Diwali.

    But go for long.

    Thanks,
    Sekhar

  3. sunil says:

    Hello Annu,

    Technially Satyam gave a Break Out in early August, and the juice almost finished (as per technicals)… related to fundamentals, i am not comfortable holding, you can hold if you study fundamentals a lot more…..
    As per me, you can wait and see but with a Strict SL of 95.

  4. somasekhar says:

    Dear Anurag,

    Don’t sell this stock at this level. It Will touch 140 within months. Now a days, it is a strong stock in this sector. Compare to many investors, you are lucky to having minimal loss on your investments.

    If you have any extra money, you can again invest ( averaging ) in this stock. For the next few days, markets Will fall down. So if your stock is available below 90, buy more.

    Thanks,
    Sekhar

    1. annu707in says:

      Just wanted to say thanks to you Sekhar, you were spot on!! Satyam is having a good run these days 🙂 Touched almost 117…
      Can you suggest a few more stocks which can be bought in current market scenario or wait for some correction? 😉
      Thanks in advance.
      Thanks to Ramesh, TZV and Sunil also for their honest opinions. Hats off to you all!!

      1. somasekhararaom@gmail.com says:

        Hi, See my comments below.

  5. TheZionView says:

    Satyam has a good quarter this time.hence the run in the stock. If will not mind loosing 10-15% then i might suggest to wait for another quarter and see if you can get some profit.

    If not book the losses its good that you did not loose much

  6. annu707in says:

    Thanks Ramesh. That was the kind of advice ( as always 🙂 ) I was looking from experts like you.

    Cheers,
    Anurag

  7. Ramesh says:

    Why did you buy it?

    Because only then someone can help you in giving you the reason to sell it.

    1. annu707in says:

      Ok Ramesh. So let me disclose. I bought it for a very unusual, special purpose, which was…. to make some profit !!! But that didn’t happened and now after couple of years being stuck in it due to current price the loss seems to be minimal so I was just seeking advice if its sane to sell it now and deploy the proceeds somewhere else like FD, MFs, RD etc.

      1. Ramesh says:

        Actually, there is nothing wrong with your reason (in case you feel that).

        You bought it for speculative purpose (and you were clear about that), and since that has not worked out even after you have waited for a very reasonable time. I think it is time for you to close down the position, with just a minor loss.

        I do not think, it is prudent at this point in time, to wait for a time when that comes at your buying price exactly. You will be better served with finding some other avenue (any other instrument or stock or MF or whatever).

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