international poor people needing internet access

From Barron's 7-16-07:

"Sify, with a market value of $440 million (including $53 million in cash), sells at a trailing P/E of 205 and a forward multiple of 60...at SIFY, some 58% OF REVENUES COMES from network services for business, 34% from franchised cybercafes and broadband access, and 5% from Internet portals. But though revenues from business services grew 26% over the year, retail-Internet access slowed down. And the company added fewer and fewer cybercafes, just 86 in the fiscal fourth quarter, well below previous rates.

STRONG BUY

rec.

short term profit

tech in india

Diversification to different sector, foreign exposure, and they've recently gained new licenses, new certifications, and a new, highly qualified CEO.

Indian information content buildout

potential

From Barron's 2-5-07 issue: Emerging Market Pick

"Sify [SIFY] is a play on the Internet and Internet infrastructure of India. It is a restructuring story. The last couple of quarters have been a little choppy, but beginning in June, they hope to see some acceleration in earnings. That said, they still doubled their Ebitda from '05 to '06. They figured out a long time ago that most people in India don't have a PC, so they built Internet cafés. They have 3,552 Internet cafés. The No. 2 player is Reliance with 240 cafés, and there is no No. 3. Sify has leveraged their Internet cafes to create several portals like SifyMax.com, which is the leading broadband portal in India, and Sify.com, which is an e-commerce and mobile-game portal."

"Sify trades at $7.60. They've got $53 million in cash. They generated $13 million in Ebitda in '06. We think that will increase to around $20 million in '07. It is trading at 13 times '07 enterprise value to Ebitda. This is not something you put all the college savings into. But on a multiyear basis, this could appreciate very, very significantly."

Indian internet co's are down

To hard to guage and does
not have the website to backup its recent surge in price. One month ago this stock plummeted down to 7.00
and lower.