Renren Message Board - Msg: 27373028

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Technology Stocks : Renren

RENN 1.650

-2.9%

Jun 21 5:00 PM EST

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To: zax who wrote (48)	5/12/2011 7:59:35 PM
From: FR1	2 Recommendations Read Replies (1) of 310

Good Post! I have been curious about it too. Will they still IPO with all that is going on? If so, under what name? I assume Kaixin001 will not be the name? We have been beaten to death in the last week or so. The only good news is that it is not because RENN is a bad company or has no future. It is because the price per share multiple created by the IPO companies was way too high when they did the IPO. It is said that if you compare the RENN multiple with the other companies in your group you see the problem. People say that with a multiple of 72, stocks like GOOG would be selling at $6,000 per share. The argument on RENN's side is that GOOG does not have the potential growth ahead of it that RENN does. RENN is protected by the government (ie Facebook is not allowed in) and China only has 30% of the population using computers whereas the USA is a mature market with 80% usage. Anyhow, after this quarters earning from all the Chinese Internet companies the market has decided to get much more conservative and make companies prove they can earn their multiples before people pay up for them. So IMHO we will sell down to a reasonable multiple and then flatten out and then start climbing back up. The big news issue tonight between YHOO and Jack Ma will not help matters: bloomberg.com It gives you the feeling that you can have your investments nationalized at any moment. The Chinese government will need to step in and correct things.

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