Why I'm Short Rediff

The Indian Internet company benefited from some after-market giddiness.
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Jim "El Capitan" Cramer writes about

Rediff.com

(REDF)

, a company that he mentioned on "Mad Money" last evening.

Today, the shares are more than 35% higher based on Jimmy's bullish comments on the company

last evening in which he forecast that it would rise to $20 in the next few months. It did that this morning! I view REDF with less enthusiasm than my pal does and I will have some more detailed thought on REDF over the next few days.

In a

recent piece, I suggested that some of "Mad Money's" viewers get caught up in the moment and bid -- with Internet speed -- some of his recommendations to absurd levels. (Jimmy justifiably ridicules such aggressive after-market buying in his column!) From my perch, REDF is a clear example of this giddiness, and I have taken a short rental (short-term long) in the name as I believe it will retreat right back into the midteens over the next few weeks.

REDF is an unprofitable company with about 200 employees. The company publishes two newspapers and provides online information on shopping, entertainment -- oh yes and matchmaking and cricket! In addition, REDF provides a chat and messaging service in India. The company's annual revenues are less than $15 million -- down 30% from 2003 -- and the company has never been profitable. In this writer's opinion, comparisons of REDF to

Google

(GOOG) - Get Report

and

Yahoo!

(YHOO)

fall ... ahem, quite a bit short! More to come.

At the time of publication, Kass was short REDF.

Doug Kass is general partner for two investment partnerships, Seabreeze Partners L.P. and Seabreeze Partners Short L.P. Until 1996, he was senior portfolio manager at Omega Advisors, a $4 billion investment partnership. Before that he was executive senior vice president and director of institutional equities of First Albany Corporation and JW Charles/CSG. He also was a General Partner of Glickenhaus & Co., and held various positions with Putnam Management and Kidder, Peabody. Kass received his bachelor's from Alfred University, and received a master's of business administration in finance from the University of Pennsylvania's Wharton School in 1972. He co-authored "Citibank: The Ralph Nader Report" with Nader and the Center for the Study of Responsive Law and currently serves as a guest host on CNBC's "Squawk Box." Kass aappreciates your feedback;

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