Thursday, April 06, 2006

SIFY Pulls Ahead, Stock Sets New 3 Year High

SIFY is trading at 14.5 Dollars as I write this post. This is a new three year high for the stock, and bodes well for people who are momentum type traders. New money is watching the stock, and some of them are becoming "SIFY converts", if you will. Any time a stock sets a 3 year or 52 week high, it jumps on the radar of many traders.

People like myself who are in the stock for the long term are not too bothered by these numbers-the SIFY story will unfold over the next 5-10 years, and together with REDF, I think these guys have a good chance of being the major Internet Portals of the Indian Internet Sector.

REDF is looking weak, but probably needs to consolidate a little before the next move higher. The stock has almost tripled in a year and the gains need to be digested.

Threat from Yahoo.co.in remains to both of these companies. Yahoo is a formidable brand, and I am hearing reports that they are advertising more strongly in India. But so far, SIFY and REDF remain the top 2 destinations in India. Will keep you apprised if I come across some Traffic Data in India (really hard to get!).

Sanjay John G.


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2 Comments:

Der Grosswildjaeger said...

Dear Sanjay,

I just found a couple of recomendations for Mahanagar Telephone (MTE) in some internet forums.
Most of these recomendations are based on some newspaper articles or stock analysts and their news letters.
But no one of them ever went to India.

You are probably a little bit closer to this country. Closer than all these type of gurus in internet forums.
How do you see Mahanagar and the chance for making good profits when investing in it.

Bigcharts gives it a P/E of about 35 which seems to be fairly high for an ordinary telecom company.
Is there anything to justify this high P/E except the fact that the company operates in a country that moves into the focus of investors.

Thanks

12:38 PM  
Sanjay John G. said...

MTE is a high growth Telecom. It has a big cellular arm also, and a host of Internet offerings, which is probably the reason the Market gives it a higher PE than a standard Telecom. The growth part is the Internet Services and the Cellular Operations.

Hope that helps.

Sanjay

8:18 PM  

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