Privatization appears eminent. Chen will not sell out. Too much underlying value. Combined near term value to Renn into the hundreds of millions! Investors should be looking at Renren holdings. Sofi, Fundrise, Snowball, YikYak and GoGoVan. All doing well with excellent potential. Sofi alone nearing a billion dollar valuation sooner than later. Look at lending club, Sofi growing faster. Fundrise, the leading realestate crowdfunding platform making big noise in a fast growing industry raises more capital than any other crowd funding company and poised to alter realestate finance forever. Snowball, a social network for tracking china's financial markets is gaining traction and new investors. One of the most popular financial social networks among Chinese investors. YikYak the anonymous messaging app is growing very fast from zero to 3-400 million valuation in one year. GoGoVan the largest independent logistics provider in Hong Kong and growing internationally. Think Uber. New online education and finance pivot all tie in to the bigger picture. It's no longer about the social network. Shareholders will likely be rewarded with a private buyout and so will Chen.
Partial excerpt from China Business Blog
The clean-up has largely finished by now, though there are still a few companies like Perfect World and Renren whose shares have languished these last few years, even as many other Chinese Internet stocks boomed. Perfect World’s shares were down 20 percent last year, though they jumped 22 percent after the buy-out offer was announced. Renren’s shares were down by a similar amount, though they also jumped by a smaller 7 percent on news of the CFO resignation.
Let’s look first at Perfect World, which said it has received a buy-out offer at $20 per American Depositary Share (ADS) from a group led by its chairman. (company announcement) The shares jumped to $19.25 after the announcement, indicating investors are fairly confident the deal will succeed.
I’m also fairly confident the deal will be completed, since Perfect World is a fairly well run company and shouldn’t face any opposition to the plan if it has reliable financing. One potential scenario could see Perfect World combine with Shanda once both companies complete their pending buy-outs. Another could see Perfect World combine with Giant Interactive, which may also be looking for a buyer. Either combination could create a player that may finally have the scale to challenge to industry leaders NetEase (Nasdaq: NTES) or Tencent (HKEx: 700).
Next let’s look at Renren, which simply announced that Huang Hui has resigned as its CFO after 4 years at the job. (company announcement) It named an acting CFO, implying that Huang’s departure was unplanned and no long-term replacement has been found. The sudden departure of a CFO with no named replacement would normally be greeted with either no reaction from investors, or possibly a share price decline over concerns about potential financial problems.
But in this case investors are guessing that Renren’s days as an independent company are numbered, and that a buyout offer is coming soon.
Sentiment: Strong Buy
Thanks to Ultimate Stock Alerts (search them online) I avoided RENN and kept my shirt.
Now I have more money to play with next session
CFO and Director exit announced with no fanfare during the holidays would be a bad omen. So why is RENN stock up? Softbank and DCM ars finally flexing their muscles and making some noise. Joe had to sacrific someone so the CFO got offered up. But he has been told that if things don't change he is next. As I suggested a while back, I would highly recommend that people go and research the method by which Softbank can get Joe Chen out of the company. This stock is going straight up from here. You do NOT want to be short this company. Tons of cash, zero debt, huge optionality.........2015 will be fun for RENN shareholders.
Sentiment: Strong Buy
He is paid troll thts why paid to spew garbage. balance sheet is solid here
You leave if all is so bad. why are you here 24/7 bash-TURDING? HMMM! LOL!!
Sentiment: Strong Buy
You are a complete idiot, CFO hits the door, and the worst news ever, just as I predicted months ago. Stephen Murphy jumps off this sinking turd. Realeased on half day low volume, wait till volume pumps back on friday.