as of now until the middle of March, RENN is not going anywhere..it will bounce back and forth between $4.50-$6.50.
Until after April, that's when facebook will actively promotes their IPO, then RENN will get piggy back. And after facebook IPO is on the market for trading, then that's when RENN will wake up and be more active with their volume. Until then, let your shares hibernate!!
Or migrate to a different stock, BIOTECH has been doing very well since last Friday, it's worth to take a look it them!!
Esty, your time span is too short. It is normal that RENN had big run and then consolidation. You could be right that the consolidation can last a while untill March but it can also be a few days. The potential is there and valuation is cheap. Current market cap minus cash is less than the infrastructure cost RENN has spent. That means if someone builds a business like RENN, it would cost more than the market value of RENN.
Technically, RENN's downward channel has broken. With FB IPO and more investors realize how chesp it is, the consolidation bottom should be near. As you predict, it will trade between $4.5 to $6.5 why you want to sell at low end of range.
People that mostly short expose themselves to bigger risks. A lot of newbies have more short positions then long positions. Shorting is perfectly fine as long as you don't go over the board and hold your positions too long to where they become dangerous.
Totally agree with Cjoli. Something is up. Nothing wrong with shorting a stock like this as long as you don't take it with you at night then get up over the weekend and the company got bought out by a bigger player. Just very very dangerous.
The reason i have applied Pharma example on this stock is because renn is a huge buyout candidate. I do business in China and go there often for production of paper goods. SHMTRADERS.COM. Been doing this for a long time. Lot of people use renn and it is becoming more and more popular. One good earnings from this company and this will just start running. However another bad earnings will send it in to a new 52 week low easily.