Recs

14

4-Star Stocks Poised to Pop: Satyam

Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, scandal-surviving Mahindra Satyam (NYSE: SAY  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Satyam's business and see what CAPS investors are saying about the stock right now.

Satyam facts

Headquarters (founded)

Hyderabad, India (1987)

Market Cap

$1.8 billion

Industry

Information Technology Services

TTM Revenue

$2.07 billion

Management

CEO C. P. Gurnani (since June 2009)

CFO S. Durga Shankar (since June 2009)

Return on Invested Capital (average, last five years)

50%

Cash/Debt

$1.15 billion/$100.6 million

Competitors

Accenture (NYSE: ACN  )

IBM (NYSE: IBM  )
Infosys (Nasdaq: INFY  )

CAPS members bullish on SAY also bullish on

Apple (Nasdaq: AAPL  )

Vale (NYSE: VALE  )

CAPS members bearish on SAY also bearish on

Morgan Stanley (NYSE: MS  )

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 385 of the 398 All-Star members who have rated Satyam -- some 97% -- believe the stock will outperform the S&P 500 going forward. These bulls include TMFSTX and porcelain808, both of whom are ranked in the top 20% of our community.

Just last week, TMFSTX tapped Satyam as a good bet to get back to honest business:

Take a dash of forgiveness, add a pinch of greed, stir in a low price and you’ve got a recipe for a run-up. Yeah, this is a gamble but I’ll bet on the fact that there’s a real business lurking below the schemes and that [Satyam] is poised to make some real cash for a change.

In an earlier pitch, porcelain808 also chose to focus on the company's core:

Solid business that will work through a financial scandal. The company has catered to best-of-class talent in India, helping to attract some of the best IT folks and prevent a modicum of brain drain. A super-friendly work environment and solid business model will help keep [Satyam] afloat through the worst and then spring them ahead when the dust settles.

What do you think about Satyam, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Accenture is a Motley Fool Inside Value pick. Apple is a selection of Stock Advisor. The Fool's disclosure policy always gets a perfect score.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 25, 2009, at 10:32 AM, 1Bagger wrote:

    I think Satyam is a good bet as well. Of course, I'm happy that I didn't do what the Motley Fool reccomended when the scandal broke and sell my shares at pennies on the dollar...but honestly, you would have had to be borderline insane to do that - even moreso to reccomend doing it. It's now trading for about 3X what it was when the advice to sell graced my inbox.

  • Report this Comment On August 25, 2009, at 11:01 AM, pondee619 wrote:

    "Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say."

    Brian:

    If CAPs is so important and SO many want to hear what you have to say, WHY do you continue to avoid playing YOUR "poised to" stocks therein?

  • Report this Comment On August 25, 2009, at 1:44 PM, plange01 wrote:

    say is a great buy at its current price and could easily double and still be 70% off its high of a year ago.

  • Report this Comment On August 29, 2009, at 3:12 PM, pelicanbay1906 wrote:

    SAY is a no-brainer. Its revenues (and profits for the most part) DOUBLED between ' 06 and ' 08, has a current ratio of 5, and is 80% off it's all time high in a world economy that's starting to recover. The scandal (which I have no doubt they will weather) is the only thing keeping this stock in the single digits. It'll tripple in the next 12 months.

  • Report this Comment On August 31, 2009, at 6:26 PM, Ignoramia wrote:

    I subscribe to Hdden Gems and Stock Advisor of fool.com. Neither service has recommended SAY. I wonder why? Don't you guys trust your own system of CAPS.

Add your comment.

Compare Brokers

Fool Disclosure

DocumentId: 970701, ~/Articles/ArticleHandler.aspx, 5/27/2012 12:43:24 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 12,454.83 -74.92 -0.60%
S&P 500 1,317.82 -2.86 -0.22%
NASD 2,837.53 -1.85 -0.07%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

3/12/2012 3:59 PM
SAYCY.DL $2.64 Down +0.00 +0.00%
Satyam Computer Se… CAPS Rating: ****
INFY $42.46 Down -0.72 -1.67%
Infosys Technologi… CAPS Rating: ****
MS $13.25 Down -0.06 -0.45%
Morgan Stanley CAPS Rating: ***
IBM $194.30 Down -1.79 -0.91%
International Busi… CAPS Rating: ****
AAPL $562.29 Down -3.03 -0.54%
Apple CAPS Rating: ***
ACN $57.44 Down -0.55 -0.95%
Accenture Ltd. CAPS Rating: ****

Advertisement