Is Renren Finally Getting Worth a Second Look?

19-May-2011

I like this.

By

An eternal optimist, Liu-Yue built two social enterprises to help make the world a better place. Liu-Yue co-founded Oxstones Investment Club a searchable content platform and business tools for knowledge sharing and financial education. Oxstones.com also provides investors with direct access to U.S. commercial real estate opportunities and other alternative investments. In addition, Liu-Yue also co-founded Cute Brands a cause-oriented character brand management and brand licensing company that creates social awareness on global issues and societal challenges through character creations. Prior to his entrepreneurial endeavors, Liu-Yue worked as an Executive Associate at M&T Bank in the Structured Real Estate Finance Group where he worked with senior management on multiple bank-wide risk management projects. He also had a dual role as a commercial banker advising UHNWIs and family offices on investments, credit, and banking needs while focused on residential CRE, infrastructure development, and affordable housing projects. Prior to M&T, he held a number of positions in Latin American equities and bonds investment groups at SBC Warburg Dillon Read (Swiss Bank), OFFITBANK (the wealth management division of Wachovia Bank), and in small cap equities at Steinberg Priest Capital Management (family office). Liu-Yue has an MBA specializing in investment management and strategy from Georgetown University and a Bachelor of Science in Finance and Marketing from Stern School of Business at NYU. He also completed graduate studies in international management at the University of Oxford, Trinity College.

Posts by
Liu-Yue Lam’s Website







From 247Wallst site,

Renren Inc. (NYSE: RENN) has been an absolutely brutal initial public offering.  Since “The Facebook of China” came public it has only had one real positive trading session of its nine trading sessions so far.  We have been very critical of this IPO, but even after a drop on Monday it is possible that the dust is settling here.

Our two largest criticisms about the company itself were that its growth was overstated as soon as a week before its IPO.  Then the head of its audit committee resigned right before the IPO.  What we really felt was the biggest issue of all was that the underwriters went ahead and jammed this out to the public because this was supposed to be “The Facebook of China.”

The formal offering was some 53.1 million ADSs at $14.00 per share.  The stock’s IPO-date opening price was listed as $19.50 and the official post-IPO high was $24.00.  Then shares closed at $18.01 versus a low of the day of $18.00.  Anyone buying the first day got hosed.  It went downhill from there.

Now that this is back down to $12.60, traders may start taking a look at the long-side here.  This one was in free fall after its IPO.  The low close was on last Thursday at $12.60 on a day when it hit an intraday low of $12.55.  But Friday brought a close of $13.16 with a low of $12.00 that day.  Even though Monday’s close was a drop, it also matched the $12.60 close and the intraday low was only $12.30.

The reality is that this IPO has been an absolute disaster.  The only people who would try to argue against that are those who were somehow able to find a share borrow to get short.  Still. money is money.  Where this one ends up is a total coin toss on our end but it seems as though at least some traders and speculators are starting to take a shot here from the long end.

JON C. OGG


Tags: , , , ,
Post a comment or leave a trackback: Trackback URL.

Post a Comment

Your email is never published nor shared. Required fields are marked *

*
*

Subscribe without commenting