Friday, June 02, 2006

Can Rediff and Sify take on Google India and Yahoo India?

The duo of REDF and SIFY has seen a bit of a sell-off lately-the serious investor in these stocks is always thinking: is the fundamental story still in tact? Yahoo India is heavily advertising it's site in India, and can and take on these deep pocketed rivals like Google India and Yahoo India?

The answer: We don't know.

As a speculator (investor is the term used to define this species also) in the stock market, one must remember to play with the odds. There is a chance that these companies will actually NOT survive the challenge posed by Google and Yahoo India. But both of them being taken out is quite unlikely-given that they are the market leaders right now. If you traded the US markets back in 2000 you know what I am talking about. The top two, YHOO and AOL, survived. Lycos, Earthlink, Excite, Goto, all disappeared (not to mention Earthweb....EWEB was the ticker..the bigger IPO popper ever) or were bought out at very cheap prices. Market leaders tend to stay in hot growth sectors-the frenzy feeds on itself and more and more users know about the company, primarily through word of mouth (or email, in the digital world...).

It is important that an investor in Indian stocks invest in both REDF and SIFY-chances of both disappearing are much less than one of them going down.

Sanjay John G.

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