What made him suddenly listen to his conscience? Where was his conscience when he wanted to give away thousands of crores of shareholder money to his son’s company? By now, I am sure you must be knowing what has happened with Raju and how the figures in the financial statements were manipulated. Almost every news paper, TV channel and financial website will talk about it. Talks about punishing him and protecting shareholders – these are things anyone with common sense will agree with and support. I wouldn’t discuss those things now, as I don’t think there is any need for me to do so.
However what most people, including the regulators will miss is that is it possible that Raju did all this because he suddenly because a gentlemen or was this another scam to make even more money?
I have a feeling that a snake always bites and never turns into docile sheep. I find it shocking to believe that Raju, suddenly became a gentleman and confessed to his crimes. The truth according to me – or what my inner voice is telling me is that, the letter in which Raju confessed his sins helped him make thousands of crores.
In order to catch a criminal, we need to think like a criminal. We need to ask ourselves, if we were unethical people, what really would we do? Why would we just confess? Is it possible that an 80% fall in stock price was used by Raju, to make thousands of crores?
Is it possible that Raju (or people acting for him through different identities and accounts) bought Put options worth several hundred crores and went short, just before he publicly shared the letter with the world? Most people don’t understand how it is possible to make money when stock prices go down – however those who understand Put options and Shorts, will tell you that the more the stock price goes down the more money can be made.
So for instance if the stock price goes down by 1%, and you are holding a Put option – you make 10%. Isn’t it possible that Raju, told people or through fictitious accounts bought Put options worth hundreds of crores and exited all of them with profits running into several thousand percent when the Styam stock fell? A fall in the share price of Satyam of 80%, would mean he must have made thousands of crores. Did Raju use unethical ways to cash the crash in his stock price? We all know how unethical businessmen burn their godowns filled with worthless junk, only to claim insurance. Don't we? Why can't the same thing happen in the stock market?
His shareholding in Satyam, was anyway very minor and he probably thought he has already lost his reputation, he might as well do some manipulations and make thousands of crores.
To catch a criminal you need to think like one. Why on earth will he confess to such things without any pressure, court case or legal proceedings? Even if there were legal proceedings against him, he could have simply denied this fact and let the court case go on for several decades.
There is surely more to this than we can see on the surface and regulators should investigate this. Today’s stock price fall of 80% probably made Raju and his family even richer.
The regulators, media nor investment experts have still not spoken or discussed this issue, as I feel they still have not thought on those lines. Unfortunately or fortunately, they come from a more professional, bureaucratic and formal background and are unable to think on the same lines as people who are playing in the market. I don’t mean to belittle them, I am just saying is that to fight financial crime we need people who are able to think just like the criminals. I hope what I have just shared with you gets investigated and we will know what the real truth is.
Investor rights need to be protected and the criminals need to be punished. It is very sad when innocent people lose there hard earned money because of unethical accountants, auditors and promoters.
I think this proves to all those non-believers, that the best way to invest is not simply by looking at the balance sheet, but by understanding the business. The Happionaire Way has been saying this since the very beginning – but still a few conventional students of finance did not agree with it. Now is a good time for the old rules to change. More important than just numbers, is the real business.
If you spoke to anybody in the IT industry, even sometime ago, they would have told you how Satyam doesn’t have the most ethical of practices. I had done that and that is why never fancied it.
Coming back to my question - Did Raju Really Become A Gentleman or a Multi-Billionaire Overnight? Did the 80% fall in stock price today help him make thousands of crores? I hope we get the real answer soon. What do you feel? I would like to hear from you here.
I hope hard working employees and investors, are not made to suffer because of one Raju. May God bless people with wisdom so they know that the most important thing in our lives is not to cheat people only for the sake of money. This life is a gift where we are all meant to do greater things.
Also read: Can You Really Cash The Crash?