MUMBAI, DEC 16: The American Depository Share (ADS) price of India's lone portal listed on the Nasdaq has crashed below the psychological barrier of $ 3 on Friday. The company had issued its share in June this year at a price of $ 12 per share and saw its share prices climbing as high as $ 28 only to crash later below the offer price. The global meltdown in dot com business, and a falling Nasdaq are cited as the main reasons for the ADS crash. Accordingly, the market capitalisation of the company, has fallen from its peak time 128 million to $ 37 million as of Friday. Over 19,800 Rediff shares changed hands yesterday. In an exclusive interview to this newspaper recently, Ajit Balakrishan had said that the Rediff crash on the Nasdaq is not worrying the management. ``Rediff has a long term strategy and we are going as per that plan. The stock markets ratings to our company will not change those plans.'' When asked about when the loss-making portal will make money, the Chairman said: ``We are quite comfortable with the recommendations of FII analysts who are predicting that we will start making money by the end of next calender year.'' As per US market regulator, Securities and Exchange Commission (SEC), any company listed on the US markets are barred from issuing any forward looking comments. On Friday, Nasdaq also crashed by 75 points following a profit warning by the market mover, Microsoft. Analysts say that the fall in Rediff shares is in line with the sagging ratings given by various fund managers to dot com shares. Almost all the dot com shares have crashed since April this year. During the third quarter of calender 2000, Rediff posted a 53 per cent revenue growth but net loss (before an extraordinary item represented by foreign exchange gain of $1.99 million) stood at $2.09 million. Net loss for the previous quarter was $2.87 million. The portal recorded a higher net revenue of $1.34 million which was up by 53.5 per cent sequential quarter growth.
