Jim Cramer of TheStreet.com Joins The Indian Growth Story, Positive on REDF
Who else but Jim Cramer has turned a fan of Rediff. This is the first time REDF has been endorsed by a major media personality. Cramer is everywhere---and this will give more publicity to the Company and naturally, the Stock.
See Cramer's take on REDF and in general, Indian Stocks , here
I like that he realizes that the Indian market is a Secular Growth story. Indians have finally gotten it together-thanks to the IT boom, the birth of the Internet, and major developments in Indian Communications Industry. TV coverage in India is bordering 100% in the big cities; Mobile phones are another channel which are growing fast and, more importantly, steady. Put together the Economies of Scale of a country of one Billion people and you have a masala for successful Investing. All dips in the Indian Market are used as buying opportunities- this trend I expect to last for many years to come.
And REDF and SIFY are companies at the forefront of this technological revolution. Indian by nature are tech lovers, and Internet penetration will only accelerate in the years to come. That is great news for shareholders in Indian Internet Stocks like these two-their revenue and profit growth will also accelerate. Ultimately, you gotta keep the macro picture in mind if you want to see the micro picture well.
Cramer is advising people to sell their Indian Bank Stocks. He's wrong there. HDB and IBN are tickers of these-they are the Citibanks and Bank of Americas of India. These have had a tremendous run-up in the last few years-but I think people are selling too early. This rally in the Indian Market will last for many years to come-and smart asset allocation models never get off from a boat moving so smoothly.
I think REDF and SIFY ownership is like buying options on the Indian stock market-it is a leveraged play on the fundamental story. The volatility is tough to stomach at times (the stocks fell of a cliff recently!), but if you are in it for the long run, as I am, you get used to it...and just leave that part of your investment portfolio alone.
See Cramer's take on REDF and in general, Indian Stocks , here
I like that he realizes that the Indian market is a Secular Growth story. Indians have finally gotten it together-thanks to the IT boom, the birth of the Internet, and major developments in Indian Communications Industry. TV coverage in India is bordering 100% in the big cities; Mobile phones are another channel which are growing fast and, more importantly, steady. Put together the Economies of Scale of a country of one Billion people and you have a masala for successful Investing. All dips in the Indian Market are used as buying opportunities- this trend I expect to last for many years to come.
And REDF and SIFY are companies at the forefront of this technological revolution. Indian by nature are tech lovers, and Internet penetration will only accelerate in the years to come. That is great news for shareholders in Indian Internet Stocks like these two-their revenue and profit growth will also accelerate. Ultimately, you gotta keep the macro picture in mind if you want to see the micro picture well.
Cramer is advising people to sell their Indian Bank Stocks. He's wrong there. HDB and IBN are tickers of these-they are the Citibanks and Bank of Americas of India. These have had a tremendous run-up in the last few years-but I think people are selling too early. This rally in the Indian Market will last for many years to come-and smart asset allocation models never get off from a boat moving so smoothly.
I think REDF and SIFY ownership is like buying options on the Indian stock market-it is a leveraged play on the fundamental story. The volatility is tough to stomach at times (the stocks fell of a cliff recently!), but if you are in it for the long run, as I am, you get used to it...and just leave that part of your investment portfolio alone.
4 Comments:
John...
new to your site... good info over here... I saw you have a blog on gold... I'm interested in what India does for its natural resources and basic building materials ... how enriched are they as a nation w/ their own precious metals, basic metals, basic building materials & energy resources (oil, uranium etc) resources?....
it would seem if they do, the demand is should be upramping significantly...do they have any public companies that are involved in these sectors? ...
lastly in re to natural resources are they focusing on oil, coal or uranium for utility demand? ... thanks for any help
Russ:
India has an okay situation of natural resources, except Gold and Oil, which they buy outside. However, this will changes in the coming years.
Commodities markets are shooting up partly because of accelerating demand from India and China. These are BIG countries, and growing at 8% per year, these two can easily move the markets of any commodity. Oil and Gold are in secular bull markets for years to come.
There are no public companies listed on US Exchanges which deal with Natural Resources directly. There are many on Indian Exchanges. You could buy IIF or IFN, Two funds which trade on NYSE, which are pretty good bets on the Indian Markets. They pay great dividends also. Their expense ratios are on the higher side, though.
John
John...
thanks.. in re to the funds you mentioned, any opinion on the new matthews india fund: mindx? ...
secondly, I was curious also in re to your take on India's energy method choice going foward to meet utility demands... wh/ are they embracing more: uranium, coal or crude to meet these demands?
lastly, i'm in the usa & can buy many stocks on the canadian exchange b/c many of these companies allowed their equities to be sold on the american exchanges via the pink sheets... unlike typical pink sheet stocks, your not taking that same type of risk... b/c the pink sheet simply a conduit in wh/ to allow amer buyers to buy on usa exchanges... are there any India companies (aside from ones already on the major amer exchanges) wh/ also use this same method?
thanks again
Russ:
Don't know about MINDX. If I was to go for a mutual fund, it would probably be IIF. They are a Morgan Stanley Product, gives me more confidence.
Going forward, looks like India is leaning towards Crude+Coal. See this article:
India's Energy Future
Also see the article(mentions that coal is 50% right now, and crude is 37%):
Environmental Issues
Uranium is a minor source of Energy in India, and will remain that way most probably.
Don't know of any Indian Companies listed on the Pink Sheets. Indians are pretty restrictive still wrt foreign capital, that might be one reason. Standard ADRs or Funds seems to be the way to invest in India, at least right now.
John
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