next trading day. Ask why ?
with the after hours decline the stock is trading very close to the value of its cash, short and long term investments and despite huge quarterly losses these assets remained almost unchanged qoq.
and while results and guidance were truly underwhelming it is hard to imagine that the share price will fall below liquidation value.
the forecasted big qoq revenue decline is most likely almost solely tied to the gaming business which will undergo a major restructuring meaning that the company obviously decided to cease commercial operations on most of its current underperforming games starting this quarter. The restructuring of the gaming division was already rumoured some days ago and some high level executives already left the company. So this does not come as a big surprise.
and don't forget the Baidu deal regarding Nuomi which will close during Q4. This will give RENN another $160 mln in cash and eliminate most of the losses from this subsidiary from the p&l statement as Nuomi will be separated from RENN following the completion of the Baidu investment. So the guidance might not include any Nuomi revenues at all.
The company's business seems challenged on all fronts - gaming, advertising and even Nuomi are all very weak and will get even weaker going into Q4. On the other hand the company is trading at cash value and has managed to strike a big deal with Bidu for its tiny loss making Nuomi unit.
I don't see much downside from current levels but there might be some upside based on hopes that the company might consider to sell itself given the dismal state of the business.
cash and long term investments are barely down from last quarter and amount to more than $1 bln - this won't go down within the next few years
lol - pure nonsense - if someone would be interested they would have made a deal. Remember that they were evaluating ALL strategic opportunities for many months. And bankruptcy coupled with an asset sale to Toshiba. This deal actually saves the jobs of most OCZ employees and therefore looks like the best possible outcome.
sure the stock is up tenfold since then in part because of some new product orders but mostly because of the momentum traders.
But at $12 mln market cap I wouldn't still call the shares overvalued here. They have just skyrocketed because of huge demand created by the momentum crowd which might persist at least one more day.
investors will ask questions about the next CFO leaving here
miniscule free float after the company just executed a reverse stock split last month (only around 1,000,000 shares outstanding altogether)
miniscule market cap (just $12 mln even after today's stellar rise)
great close on giant volume
I have to admit this one might gap up big time on Friday as all the right ingredients are added here
your broker doesn't guarantee for anything - the complete order book will be deleted when a security gets halted for trading.
why should they - they most likely pay around $10 mln for inventories etc.
they already pre-announced ugly Q4 revenue expectations so forget about blow-out quarters anytime soon. And given the margins you shouldn't be too unhappy about the company failing to sell their products.
in terms of new bookings - but I guess he will also tell you about just another round of financing...
I know about the recent financing but please tell me how the company will manage an 8x revenue expansion without an increase in working capital ? I guess at some point they will have to expand production facilities at least and increase the workforce significantly.
They are just waiting for a secondary - believe me.
shareholders get nothing as expected - took longer than expected but finally it's over. No pity for uneducated longs here.
with the stock halted all the day - just publish the press release and close the doors behind you guys
stock down 35% from the above post due in part tp shares being finally available for shorting - wouldn't chase this going forward
or perhaps the sellers are just waiting for better prices on the NYSE next week - anyway the stock is up nicely and might have some more room to run.