Terminating Coverage with a Hold Rating

| About: India (REDF)
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Excerpts from Gilford Securities analyst Ashish R. Thadhani's recent note to clients on (REDF):

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REDF: Terminating Coverage

Investment Conclusion. We are discontinuing coverage of REDF with a Hold rating – downgraded from Buy – and suspending our target/estimates. Pending improved monetization of Rediff services, a return to operating profitability and greater shareholder receptiveness, we believe that investor attention and our own efforts are better applied elsewhere. Rediff recently reported 3Q09 non-GAAP diluted EPADS of ($0.08) on revenue of $5.3 million (-38% YoY) that again fell short of our ($0.03) estimate on $6.4 million. The deepening global economic downturn is forcing clients to curtail discretionary ad spending and – against the backdrop of a nascent marketplace – we expect this will keep pressure on operating performance. However, Rediff remains well capitalized with net cash approximating $47 million or $1.60 per ADS.

Disclosure: I, Ashish Thadhani, certify that all the views expressed in this research report accurately reflect my personal views of the subject companies. I certify that I have not and will not receive compensation with respect to the issuance of this report.