Tuesday, April 26, 2011

Forbes: Rediff (REDF) Announces Local Deals Service, Stock Skyrockets

Eric Savitz at Forbes beat me to the punch on this concept, but it appears now we have a perfect mimic to 1999 - when any company that announced it was launching a website surged 10-15-20% overnight.  Today, you have to launch a Groupon like service, where you are going to do local deals, and your stock surges.  Even if your service is in India.  See Rediff.com (REDF) today. 

I was trying to figure out why Travelzoo (TZOO) was so popular of late other than the short squeeze, and I noticed they are launched a group buying service to their 20 million subscribers.  Hence the "Groupon effect".  Of course there are only so many people who can subscribe to so many local deal services who have X amount of dollars to spend, but you don't worry about details like that in a bubble.  I love when central bankers go mad, the nonsense that ensues is so much fun.

To that end, I'd like to announce the Fund My Mutual Fund local deal service - I already have a few thousand subscribers.  

Hold on... yes... ok.... Goldman Sachs has just notified me that the value of the website has quadrupled in the past 18 seconds.  Winning!

Via Forbes:

  • Sprinkle a little of the Groupon pixie dust on your average Internet stock, and just watch the magic unfold.  Over the last few days, I’ve been chronicling the huge spike in shares of Travelzoo (TZOO), thanks in no small measure to the rapid growth of its budding LocalDeals unit. There have been similar recent moves by other companies that moved into the space, like TheKnot (KNOT) and OpenTable (OPEN). (Facebook even jumped into the market this morning.)  And the local deals mania shows signs of spreading internationally.
  • Indian Internet content player Rediff.com (REDF), already on a roll in recent weeks, gave itself a rocket boost by announcing a group deals service called Rediff Deal Ho Jaye in 40 cities in India. (Example: today in Mumbai, treat the kids to a visit to the 4D attraction Orama Krazy Kingdom for 51% off!)
  • The company said that the service “enables consumers to learn about exciting things to do in their cities, to try out services that they haven’t tried before at significant discounts and to stay informed of new deals.” The company added that “merchants will now have the ability to take advantage of Rediff.com’s reach to generate business through new customers by offering special discounts and promotions on Rediff Deal Ho Jaye.”
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