Many, including myself, would have expected a modest buyback over the next 6 months to complete the $50m. Yet we woke today to find our conservative management team has purchased all of the 15m shares and are now gunning for another 35m.
Tutes, hedgies, and retail have sat on the sidelines while Chen accumulated.
If they don't act now, he will pick up 50% of the available 60m tradable shares for a song.
The company now has 10% of all authorized shares available for a partnership and they may get to near 20% soon enough.
There is more to this story given the history of Chen's cash hoarding.
The reality is this....why buy the shares for the sake of accumulation?
The company's cash position is so strong and they have kept it above $700m.
Why bother buying another $100m worth when they are considering an acquisition of Lashou, when Android gaming rollout expenses are entering their peak?
Chen has always been so conservative with money and now he has aggressively bought back 15m out of a 75m share tradable float?
All I can say is WOW....SOMETHING BIG IS UP
They have purchased 15m shares recently(this Q)? where did you get those information? do you have any link? in Q1 they reported only finished buyback 1.3m shares, and based on yahoo RENN still has about 250M float, not just 75m
You are absolutely correct. There were only 1.3m shares purchased and now the remaining $45m has been spent with the stock avg of around $3.
As for the number of tradable shares please refer to the sec filings regarding insider ownership for Chen. SoftBank, and DCM. You will see that there were only 95m ADRs outstanding and the company has bought back about 35m. There are around 60-65m shares out there.
If Chen completes the $100m buyback at these prices, he will bring the number of tradable shares down below 40m
We know this much....Alibaba and JD are shopping IPOs. VIPS and Dang are performing well.
FB is going to have amazing earnings and the stock is rising again. At least 25 games will be released on Android by the end of the year. 56 and renren no longer just have penetration in China, Hongkong, S Korea, and Japan, we are now seeing user traffic on this side of the pond. SoFi's website is now fully operational and funding has improved with Bancorp investment. Renren continues to dominate among HS and college kids who are growing up, joining their linked in, uploading UGCs, and shopping. And we are approaching 200m users with tremendous mobile penetration.
Chen must be quite optimistic despite his cautionary outlook.
If he bought $50m in 3 months. how long will it take till he completes the $100m? and even if he pays $5 a share avg, he still brings the tradable float down to 40m shares.
Gaming spinoff rapidly approaching.
You think the Nyse wants to let any of these Chinese ipos go elsewhere
Retail has no concept of Renn
WS traders about to make out like bandits when FB anoints Renn and puts it on Retail's radar