Ajay Bagga of Financial Planning Standards Board of India is of the view that riskier investors can buy Satyam.

This Series is the quotes of Advisers who told us to buy Satyam in Jan 2009

Ajay Bagga of Financial Planning Standards Board of India is of the view that riskier investors can buy Satyam.

Bagga told CNBC-TV18, "We talked about this 10 days back that smart money is buying into Satyam because the intrinsic wroth is very much there. If 1-1.2 billion of cash is actually there, we are waiting for the results to confirm that and then a USD 2 billion market cap with a USD 300-350 million of profit figure is really going cheap because you put in USD 2 billion even to buy out a whole company, you get USD 1.2 billion of cash and you get USD 350 million of possible profits and it’s a no brainier, so that was giving some amount of support to the stock.

He further added, "What was really annihilating the stock prices was the corporate governance and the question mark over the management’s ability to really chart what is good for the company and I think that asset gets addressed and we would see this stock going up pretty sharply. So for the riskier investor if someone is able to take that kind of a risk, it still remains a buy and it is quite cheap, the overhang is there and will that management will be shown the door, very difficult as they are strong politically and in India its tough to ouster the management and we haven’t seen that happen. But that could be a real big one for the stock if the management would change in a professional management or some other company takes over. So I would say interesting and some money can be put in it that perspective and in fundamentals it’s a very good stock overall and the only thing is the management is not worth trusting."

Published on Tue, Jan 06, 2009 at 10:50 , Updated at Tue, Jan 06, 2009 at 12:07
Source : CNBC-TV18

Source Moneycontrol.com