I
still remember the day, it was 7th Janurary 2009. At that time, I was
working at Infosys, I dont exactly remember the time news came out, I
was about to start to office.
I was watching
CNBC, Satyam, ICICI and Yes Bank were list of stocks i was trading for
short term during that time. But i booked some losses and exited satyam
when the maytas news was out. So I use to keep watching the price of
these stocks often. All of a sudden there were flash news in all
channels and Satyam was the reason. All the anchors were reading out the
letter written by Raju. And the stock price started falling rapidly.
I
did not understand anything what the anchor was talking about, at that
time Satyam Computers were in Futures and Options, so there are no
circuit filters for this stock.
I was in state
of shock, since i never witnessed such a fall in stock price before, the
put option price was soaring like anything. But still I couldn’t come
out of this shock, i couldn’t make any trading decisions.
In
another few mins, other than business channels all other channels
including regional Tv started telecasting the news. I was thinking how
could this happen to Satyam Computers? Because during my college days,
many of my friends have attended campus interview and got job placements
at Satyam, i was thinking whats gonna happen to them and what would
happen to 1000s of employees?
By the end of
day, the stock has fallen from 188 to 40, it has lost 78% in just one
day. The next day it even went down further and reached Rs.6.
I
still remember, the talks I had with my team lead at food court. “Even a
single Tea at Infosys food court cost Rs.12 which is higher than Satyam
Share price” For that complete week, where ever i go, the tea master,
parota master, bakery guy, everyone said the same thing.
“Today its Satyam, tomorrow it could be Infy or Wipro or TCS”
Once
the dust settled, by the time when Mahindra acquired Satyam, the stock
moved from Rs.6 to Rs.130 in less than one year. More than 2000% returns
in less than a year.
All great investments or trades always happens when there is a great Panic in the markets!
No comments:
Post a Comment