Risky bet on Ren Ren right after IPO. The Chinese Facebook is already on a rollercoster. May 6, 2011Posted by deminvest in China stock, RENN, Renren.
This is how I just gambled $ 972 on a crazy IPO on Ren Ren, a young company which supposedly should be the Chinese Facebook:
Symbol RENN Quantity 50 Shares
Date of Order0 5/04/2011 Time of Order 12:54 PM
Executed Price $19.33 Commission $4.95
Total for this Execution $-971.45
I did it this crazy bet for several reasons:
- Creative Maths… If Baidu : Google = RenRen : Facebook , then $51B : $173B = x : $50B and x = $14.7B. If Renren reaches a Market Cap of $ 14 B, it means the stock has gone 10 times up
- Facebook will never be able to operate in China. If they try, then China will want details about Facebook connections of dissidents. Such information could yield death sentences.
- I’ve heard form Chinese teachers that Renren is very well known by Chinese students… very much Facebooklike
- Baidu went up 1000% in three years. I can take risks hoping Renren may do the same