There were all sorts of warts on "Chinese Facebook" (not really) Ren Ren (RENN) when it came public. [RenRen IPO Appetite Seen Huge, but Red Flags Abound] This did not stop the investment bankers from gifting their best customers with shares that could be flipped to the public in the low to mid $20s on IPO day. While a complete bust, breaking below its IPO price of $14 within a week or two [May 10, 2011: Thus Far RenRen a Bust] While impossible to catch a falling knife, those who were genius enogh to buy at $6 could have made 100% in just under 2 weeks with a perfect entry and exit. For the rest of us mere mortals, a nice opportunity to skim 20-30-40% in a very short period of time also existed.
A price around $8 to $10 was most likely far more reasonable to come IPO at, and without the hype of the first day pop, would have led to a far more stable course for the stock. But the larger point is, there is a valid price point for everything - unfortunately, a lot of people learned that the hard way on this one.
Wednesday, July 13, 2011
Ren Ren (RENN) Eventually There is a Valid Price for Everything
Best Of FMMF
- 1: Warren Buffet Piles on Europe
- 2: [Video] Jim Chanos Returns from Europe, Even More Bearish on China
- 3: A Chart to Open Our Eyes - Staggering Changes by Multinationals in Employment Behavior 00s vs 90s
- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows