Google / Yahoo on the Acquisition Hunt in India?
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CONTRIBUTOR Ian L. Cooper http://www.vixtrader.com
Months after a May-June 2006 market meltdown to 9,000, Bombay�s Sensex index recently nailed a new lifetime high above 13,000, surging past the 12,671.11 high of May 11, 2006. Once the rally sustains itself, we�re looking for heavy buy interest in small and mid-cap names, especially those associated with e-commerce, namely Rediff.com and Sify.
There�s little doubt that the India, whose Sensex cleared several psychological barriers, including 10K, 11K, and 12K barriers, has become an attractive investment for worldwide investors. And there�s little doubt that once the latest sustains itself, we�re likely to see heavy buy interest in small and mid-cap names, especially those associated with e-commerce.
But could we see 14K by year�s end? It could happen. Consider the strong corporate earnings, the strong overseas fund inflow, the positive news that India will spend $350 billion on infrastructure, and a confident Prime Minister P. Chidambaram who believes India could expand by 10% in "the near future and poverty afflicting millions be eradicated in the next 10-20 years," according to FinancialExpress.com.
On the heels of that strength, we�re recommending that investors back up the truck on Rediff.com (Nasdaq: REDF) and Sify Ltd (Nasdaq: SIFY). According to TheInquirer.net, India is expected to see a 160% jump in Internet users, which should drive more traffic and revenue to Internet sites.
And second, we believe REDF and SIFY are buyout candidates for Yahoo (Nasdaq: YHOO) and / or Google (Nasdaq: GOOG) based on recent discussions. Yahoo, for one, just inked an $8.6 million deal with Bharat Matrimoney, an Internet personals site (the Indian online matrimonial market is worth an estimated $200 million), and is reportedly "hungry for more acquisitions and tie-ups," according to BusinessWeek.com.
Yahoo is so hot for India that it�s already announced "plans to launch up to six new portals in regional languages, and acquire or enter into a partnership with an Indian company," according to Business-Standard.com. In fact, a decision on a partnership and / or acquisition is expected over the next six to 10 months.
And, our Google assumption is based on an invitation for applications from people who can "identify and evaluate acquisition opportunities across existing and future market opportunities, drive management team decisions, lead deal execution, and help manage post-acquisition integration and performance evaluation in the South Asia region." That tells me Google�s on the hunt, too.
http://www.vixtrader.com
Months after a May-June 2006 market meltdown to 9,000, Bombay�s Sensex index recently nailed a new lifetime high above 13,000, surging past the 12,671.11 high of May 11, 2006. Once the rally sustains itself, we�re looking for heavy buy interest in small and mid-cap names, especially those associated with e-commerce, namely Rediff.com and Sify.
There�s little doubt that the India, whose Sensex cleared several psychological barriers, including 10K, 11K, and 12K barriers, has become an attractive investment for worldwide investors. And there�s little doubt that once the latest sustains itself, we�re likely to see heavy buy interest in small and mid-cap names, especially those associated with e-commerce.
But could we see 14K by year�s end? It could happen. Consider the strong corporate earnings, the strong overseas fund inflow, the positive news that India will spend $350 billion on infrastructure, and a confident Prime Minister P. Chidambaram who believes India could expand by 10% in "the near future and poverty afflicting millions be eradicated in the next 10-20 years," according to FinancialExpress.com.
On the heels of that strength, we�re recommending that investors back up the truck on Rediff.com (Nasdaq: REDF) and Sify Ltd (Nasdaq: SIFY). According to TheInquirer.net, India is expected to see a 160% jump in Internet users, which should drive more traffic and revenue to Internet sites.
And second, we believe REDF and SIFY are buyout candidates for Yahoo (Nasdaq: YHOO) and / or Google (Nasdaq: GOOG) based on recent discussions. Yahoo, for one, just inked an $8.6 million deal with Bharat Matrimoney, an Internet personals site (the Indian online matrimonial market is worth an estimated $200 million), and is reportedly "hungry for more acquisitions and tie-ups," according to BusinessWeek.com.
Yahoo is so hot for India that it�s already announced "plans to launch up to six new portals in regional languages, and acquire or enter into a partnership with an Indian company," according to Business-Standard.com. In fact, a decision on a partnership and / or acquisition is expected over the next six to 10 months.
And, our Google assumption is based on an invitation for applications from people who can "identify and evaluate acquisition opportunities across existing and future market opportunities, drive management team decisions, lead deal execution, and help manage post-acquisition integration and performance evaluation in the South Asia region." That tells me Google�s on the hunt, too.
http://www.vixtrader.com
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