Saturday, May 06, 2006

REDF and SIFY Jump on Friday on "No News"

When stocks are oversold, they will bounce back on no reason at all.

There was a mention in about the power of these companies. And the stocks ran up more than 7% each on Friday! Assuming you are a REDF and SIFY bull, you could see that both stocks were oversold lately, especially REDF. The fundamentals remain strong-Indian internet sector hasn't had any negative developments in the last couple of weeks or months, and the sudden sell-off in REDF was necessary to shake the weak hands and the hands with too much margin-they are the ones who get wiped out and hand over their monies to people who manage their risks well (and never get a margin call).

The Indian Internet Bull remains strong and all pullbacks in these two net leaders will bring in new buyers.

Sanjay John G.

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