Barrons crashes Rediff party

ContentSutra writes about a latest story on Barrons on how market valuations for Rediff and Sify are way out of whack.

In a world mad for Internet stocks, some of the maddest valuations have gone to two Internet companies in India that trade on Nasdaq, Rediff.com India (ticker: REDF), India’s third largest portal, and Sify (SIFY), India’s largest nongovernment-owned provider of broadband access.

The report seems to be a direct outcome of the sharp increase in Rediff’s stock price due to the acquisition rumors by Yahoo / Google.

I think Rediff would make an ideal buy for AOL India or MSN India as opposed to Yahoo / Google. If the public perception and Comscore metrics are any testaments, Yahoo and Google are already more popular and get more pageviews than Rediff.

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2 comments

  1. @ Parisista

    I share your views and experinece you had over Rediff.But evaluation has nothing to do with quality.Rediff is a ready to use scarse resource in a apotentially big market.Evaluation is about future and no dooubt lots of potential exist.

    Now I am sure you will have not have doubt on yahoo or google’s ability to use this resource to its full potential.

    Question is not size of valuation.Its the the “valuation” it self.Why managment of a known brand in potentially large market and decade of market knowledge doubts its ability to make it BIG?

    What make them to think of selling rediff? Is it greed to cash the investment? or fear to loose market to global leaders?