Barron’s Ends The Party at Rediff
Back in May, I recommended buying Rediff.com (REDF) into earnings. Until last week, that recommendation was worth 62.5% as the stock shot up from $16 at the time of my post to $26. Over the weekend, Barrons called REDF overvalued and that sent the stock spiralling downward to $22. At current levels, and with so many stocks way above their 10 day moving averages, the market is looking for a correction and REDF could get weaker, so I recommend selling into the mini rally in the stock today. After all, you are still up over 30% in the name.
– Faisal Laljee
Full Disclosure: I do not own REDF but my position can change anytime without notice.