there's lots of companies that trade for cash or even less than cash, it's because they have no solution to stop the cash loss.
every earning they lose cash, and the only way they raise cash is to sell off an asset.
selling assets to get cash is a bankrupt situation, and shorts love this scenario because it tricks alot of investors into thinking "yah! RENN has more cash, woohoo!" but the stock keeps dropping because they sold the only thing that can make them profitable for a one time price.
Probably $1.2 Billion in CASH
Notice Chen is not using the cash to buy other accretive businesses ?!
Notice Chen is not paying dividend?!
Notice he is not even buying back stocks like he decalred the $150M buy back almost 8 months ago.?!
He is probably using the cash to take RENN private.
I prefer balance sheet strength based on tangible shareholder equity. After nuomi closes it will be $1.5b. RENN is trading below tangible equity and has assigned $0 value to its entire business. That is 100% pure manipulation.