bpl if Alibaba has 18% ownership that leaves SINA with 82%. If Alibaba stake can go to 30% then that means more cash to SINAs balance sheet. We know that Alibaba paid $585m for the 18% which valued SINAs Weibo at the time at $3.25b ($585000000/.18). Given that GS is lead for IPO I am expecting a $5-7b market cap for SINA that will likely go higher with Alibaba IPO. My $6b figure is arbitrary.
If Weibo IPO fetches a market cap of $6b and SINA owns 80% of Weibo that equates to $4.8b.
SINA currently has $1.2B in shareholder equity. Add the two together to get a $6b value. However, SINA is currently valued at $4.3b. So basically SINA is trading at a 40% discount. SINA at $90/share is more appropriate value based on these numbers. We should see massive upgrades next week.
We also know that RENN reported 200m activated users and 50m active users last quarter. We also know that according to zhushou360 RENN android mobile app has been downloaded 46.5m times with a user rating of 8.4 out of 10. The balance sheet will have almost $4 in cash & shareholder equity with 0 debt. We also know that RENN has a significant buyback plan in place. And that nuomi sold for 10x revs to Baidu. Joe Chen speaks fluent English/Chinese and has an MBA from Stanford. He witnessed the internet boom in the US and took the model home to China in pioneering RENN. Now we also know that nuomi revs will no longer be reported and that the games revs are in significant decline as they claim have reached mature stage. We also know that the PC to mobile migration has disrupted core revs. So we shouldn't expect RENN to all of the sudden show massive revs nor profits. But what we can obviously see here is a tremendous risk/reward imbalance as the share price is valued at book value. I have been and will continue to buy the $2 strikes for almost $0 premium and will continue to buy more until RENN is either sold or gains traction. This is a one trick pony for me as this is my only investment in the market. I will buy more if it goes lower and get aggessive in the options if she runs. GLTA of us longs and screw the bashers.
Then why did it sell for $284m fools? Joe Chen has done more with nuomi than the whole lot of you moron bashers have collectably done. And you say he is bad, what does that make you....besides inept? $4/cash is worth $4 in cash you bozos. Add the value for RENN/56 and you get around $7.5/share minimum.
OK so why do you bash a company that trades below equity valuation? Where did you learn this genuity?
These guys are in on the gig.
Did anyone else email Michael Kauffman regarding the rumour? I have good news....he never replied to me and didn't update the article. I'm actually giving this 20% credibility.
You mean why is PLUG valued at $700m when it has negative tangible equity, negative net income and $4m/quarter inrevenues? Its 100% manipulation between MMs, hedgies and other billionaires and the HFTs.
Your broker doesn't care about you. He ONLY cares about his trading commissions and his annual fees. Get rid of the man and think for yourself.
It was probably a day that RENN bought back some stock. The MMs quickly issued negative media PR via Cramer and thestreet and took it down thru some computer bushleague tactic making it look like RENN was not even worth its tangible equity. The corruption behind RENN is incredibly strong. It has presented an incredibly risky investment opportunity.
You fail to mention that PLUG has negative tangible shareholder equity, lose $$$ had a mere $4m/quarterly revenue. Yet we are to believe the market cap is near $700m?
It couldn't be more obvious. Interestingly somehow a topic about Cramer and his tool buddies was deleted on this RENN board. I do remember reading a while back that thestreet and yahoo formed an alliance.