Bottom Line: 'India's Google'

Feb 11, 2006

During the week of Feb. 6 prices on Rediff first surged from $22 up to as high as $31, then crash-corrected back to $25 later in the week as Cramer decided enough was enough.

Still, all the Cramer noise aside, Rediff's recent earnings report, showing a profit of more than $1 per share, suggest that the company remains a value play, if no longer a technical-momentum story.

The trading in Rediff, of course, isn't the only thing Seattleites are whining about. Sports fans are still crying that officials "stole" the recent Super Bowl from the local Seahawks. Team coach Mike Holmgren also complained that vendors in the stands were much more aggressive about selling Pittsburgh Steeler towels than they were at hawking Seahawk towels.

Perhaps Holmgren, like those traders in Rediff, should have been paying more attention to what was happening on the field. Though there are whispers in football circles of a Curly Lambeau Curse, given that Holmgren himself was stolen, in the eyes of Green Bay Packers fans, from America's only fan-owned franchise. To paraphrase: Paul Allen's Microsoft billions can buy a coach, but not a Lombardi Trophy.

Now, by way of contrast, is the time to flip that position. Look for the greenback to spend much of 2006 retracing its temporary gains of last year, reverting to the long-term trend. Of the several vectors that tend to produce movement in the world's reserve currency, none is positive, and most are decidedly negative:

-- 1. The Fed. No matter how hawkish the Bernanke Fed talks, the departure of Alan Greenspan will leave markets much less certain about the value of the dollar. The replacement of Paul Volcker, Arthur Burns, and William McChesney Martin all produced crises for the dollar. (And, not by coincidence, U.S. stocks.)

-- 2. The economy. America's red ink is growing on the out-of-control budget, and the recently released report from Commerce suggests we could hit a $1 trillion annual trade deficit by 2008. Given America's reserve currency privilege, the dollar can sometimes rally, as it did in 2005, as central banks around the world try to prop up the dollar's value. But the banks have grown exhausted and, indeed, are likely to allow a dollar slide in 2006-207.

-- 3. World and U.S. politics. The potential for widening indictments in the CIA leak scandal remains, amidst a backdrop of weak performance by the president and a scandal-ridden Republican Congress in the polls.

Copyright 2006 by United Press International

Explore further: Underfire Uber ramps up rider safety

add to favorites email to friend print save as pdf

Related Stories

Nation could double energy productivity

Feb 20, 2013

Researchers at the U.S. Department of Energy's (DOE) National Renewable Energy Laboratory (NREL) have long understood that using energy more efficiently can be just as beneficial as finding new ways to produce energy more ...

Recommended for you

Ear-check via phone can ease path to diagnosis

1 hour ago

Ear infections are common in babies and young children. That it is a frequent reason for young children's visit to doctors comes as no consolation for the parents of babies tugging at their ears and crying ...

Timeline of the Sony Pictures Entertainment hack

1 hour ago

It's been four weeks since hackers calling themselves Guardians of Peace began their cyberterrorism campaign against Sony Pictures Entertainment. In that time thousands of executive emails and other documents ...

Two more former Sony workers sue over data breach

1 hour ago

Two more former employees of Sony Pictures Entertainment are suing the company over the massive data breach in which their personal and financial information was stolen and posted online.

Second security clearance investigation contractor hacked

2 hours ago

Federal officials say the private files of 48,439 workers may have been compromised by a computer breach at government contractor KeyPoint Government Solutions Inc. The hacking incident is the second this year at a major ...

Digital dilemma: How will US respond to Sony hack?

2 hours ago

The detective work blaming North Korea for the Sony hacker break-in appears so far to be largely circumstantial, The Associated Press has learned. The dramatic conclusion of a Korean role is based on subtle ...

Constantly changing online prices stump shoppers

3 hours ago

Online shopping has become as volatile as stock market trading. Wild, minute-by-minute price swings on everything from clothes to TVs have made it difficult for holiday shoppers to "buy low."

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.