Satyam Computer downgraded to Sell at Gilford Securities following confession of fraud by former Chairman Ramalinga Raju

Gilford Securities downgrades SAY to Sell from Buy based on the shocking confession of fraud by former Chairman Ramalinga Raju. Firm notes that in a chilling letter to the Satyam board, Mr. Raju disclosed an essentially nonexistent cash balance plus inflated operating results over several years, and admitted that the aborted Maytas deal was a final attempt to exchange fictitious assets with real ones. They say he also revealed that insider shares had been pledged for the purpose of raising funds to sustain operations. No board member had any knowledge of this situation, nor did a vast majority of senior executives (listed by name in the letter). The firm says fallout is likely to be widespread: ~50K employees, 180+ Fortune/Global-500 clients, international investors and peer companies