Is Rediff.com a buy going into Earnings?
Rediff.com – India’s top web portal looks attractive going into earnings. I believe India will be the 3rd largest market on the internet in the next 5 years, and being that REDF is India’s version of Yahoo, it is one of the better international internet plays out there. While that does not help Rediff’s earnings later this month (on May 16th), it is one of those risky stocks that could make you a quick 10%. Of course it could also lose you a quick 10% as well, but I find that unlikely.
Given that the company had a couple of bad quarters with lower EPS, but keep in mind that it is sill growing revenues by 50%. That being said, the stock has some risk to it, so risk averse investors are better off staying away from it. If risk is your thing though, I would buy it ahead of earnings.
– Faisal Laljee
Full Disclosure: I do not own any REDF but my position can change anytime without notice.
I agree with your view of India. It is going to be an expanding market in the coming years–What are your thoughts on a company like Euronet (EEFT) that is the leader within India of ATM business (owning/operating)?
What is your opinion about SIFY ? I know they are playing catch up to REDF and do not have the same exposure or brand name as REDF but do you think SIFY has potential ?