RENN, Facebook of China, Falls Below IPO Price

May 11, 2011
J. Webster
Comments Off on RENN, Facebook of China, Falls Below IPO Price

Renren, the supposed Facebook of China is tanking today, down 10% and below its initial public offering price of $14. Is it time to put your foot in the water and buy some RENN?

RENN jumped $4 on the offering a few days ago but has sunk down close to $13 today.

There was a sign that this might be a risky purchase on the IPO price, but it did not deter investors on the offer. Reuters has the details.

In a regulatory filing with the SEC before its public offering, Renren had said it had found a “material weakness” and a “significant deficiency” in its internal financial controls, but added that it has not conducted a comprehensive review.

Techcrunch.com has a good run down on the stock, and whether it’s worth a long time look. After all, what with the possibility that RENN does turn out to be the Facebook of China, they have a lot to gain.

To me though, if you want to really know if RENN is a stock to own, you’ll have to talk to some Chinese internet users who know the social networking landscape in China.

Also, one thing that does bode well for RENN is what happened to Google, and how they decided to pull out of China, would Facebook follow their path? If so, RENN would could very well be the Facebook of China. The risk is big though with a stock like this. Yet the gain might be big, too.

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