Remember when Rediff.com (REDF) made an announcement about a “group buying” service in 40 cities, and it was cheered as the “Groupon of India” (rah rah!)? The stock hit $13s that day, and bubbled up to hit $18 two sessions later. Since then? POOF.
Just fill one gap at $12 (one more to go in mid $9s) and is now substantially below the level when it made the announcement.
Everywhere I look the “social media” and “groupon clones” are taking knives to the backs. This is the other side of the mountain when you play the nonsense trading lemming action. You can dance (just do it by the exit), and make sure you never drink (Kool Aid).
On the positive side this ‘cleansing’ should lead to some nice opportunities for the second half of 2011.