Global Tech Sector in Free Fall This Morning: Lenovo Stock Suspended; India Meets it's Bernie Madoff

[leveymg]

HONG KONG, BANGALORE - January 7, 2009. Stock trading in Lenovo was suspended on the Hong Kong exchange in sell-off in anticipation the company was on the verge of a major downsizing and restructuring of its global operations. Lenovo, which bought out IBM's PC operations, is the world's 4th largest manufacturer of laptop computers, and still operates in the United States. Meanwhile, the Indian off-shoring industry is also being hammered. Barron’s TechTrader Daily reports in a companion article this morning:

Satyam Computer Services (SAY) shares will open down more than 90% this morning, following the revelation that the company’s founder and now-resigned chairman, B. Ramalinga Raju, has confessed to cooking the company’s books. That’s shaken investor faith in other Indian IT outsourcing stocks.

In short, Satyam now looks like the Indian version of Enron, and Raju has become the country’s Bernie Madoff. It’s not good for the Indian stock market, and it is not good for IT services group.

Ergo, in pre-market trading:

• Cognizant (CTSH) is down $1.44, at $18.
• Infosys (INFY) is down $1.21, at $25.39.
• Wipro (WIT) is down 75 cents, at $7.66.
• Patni (PTI) is down 18 cents, at $5.80.
And Satyam is down $8.53, or 91.2%, to 82 cents.

This appears to be a race to the finish at Ground Zero. Fraud is racing jobs loss is racing declining investor confidence to the bottom in the globalized economy. We all lose.

This is not a drill. Take immediate shelter.
____________________________
See, Eric Savitz, Baron’s Online, TechTrader Daily, Lenovo Shares Halted; Big Restructuring Ahead? , (January 7, 2009), http://blogs.barrons.com/techtraderdaily/2009/01/07/lenovo-shares-halted-big-restructuring-ahead/

Ibid., http://blogs.barrons.com/techtraderdaily/2009/01/07/satyam-off-90-plus-other-indian-it-stocks-sliding/

[Taverner]

1. If we're lucky, this might be the death knell for the outsourcing movement

But I doubt it

[OhioChick]

2. Fingers Crossed.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x414373

[Cessna Invesco Palin]

6. Why would it be?

So we finally found a corrupt non-American. How many corrupt Wall Street fuckers ought to be in jail today?

[blogslut]

3. I has sad about Lenovo

They took up the mantle and continue to build the finest pc/laptops evar. IBM pcs are tight.

[Taverner]

4. Lenovo will survive

I think...

[Cessna Invesco Palin]

7. The ThinkPad product line will almost certainly survive.

Whether Lenovo keeps it or sells it off is yet to be determined.

[Azlady]

5. 5th recommend to greatest page &

lets hope this does something about our outsourced jobs.

[K Gardner]

8. I almost sold ALL my stocks last week, when for the first time in months my

portfolio broke even. I'm sorry now I didn't.

[ihavenobias]

9. K & R

[Skittles]

10. oh where did I put that fucking thing

oh here it is :nopity:

[ChromeFoundry]

11. I'll join you.

:nopity:

[OhioChick]

12. May I participate?

:nopity:

[DemReadingDU]

13. and another is a quartet

:nopity: