Nothing Creates Madness More Than An Internet Stock - $1billion Mkt Cap & $16million Sales
Posted: Thursday 09 February 2006 - Global Markets Section
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History as the saying goes repeats itself. And nowhere is this more apparent than with internet stocks. Sell the right story and you can still create a billion $ company in a few years. But the fun rarely lasts......
Rediff.com (REDF) a sort of Indian Yahoo style internet portal now has a market cap of over $1billion with of course the obligatory annualized sales of $16million.
The tiny profit of $325,000 announced last week gave the company a market cap boost of over $300 million!
97% of the company's stock is held by insiders so expect further games on this one until the minority of traders skin the majority of get rich wannabees. Then it will be time to start playing games on some other stock for the company in question is basically irrelevant.
Remember Travel Zoo (TZOO) of 2004/2005? Same game plan, same games. A tightly held stock (by insiders) which gives the Wall St sharks a nice small float to play with, and gets the greedy excited.
