Renren (RENN) Shares Seeing Rare Upside Action
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Shares of Renren Inc. (NYSE: RENN) are just off an intraday high of $3.52, up $0.22 (+6.1%) for the session. The stock appears to be breaking above the all-important 200-day smooth moving average after some consolidation Thursday. Despite the light volume in the rest of the stock market Friday, Renren has already traded more than 6.25 million shares, sharply above the stock's average daily volume of 3.2 million shares.
Renren shares have absolutely plummeted since going public on May 4th. After pricing at $14 and opening for trade at $19.80, the stock surged to a high of $24 on that day. Shares are now down a jaw-dropping 85 percent. To put it simply, Wall Street hasn't been too kind to Chinese Internet stocks.
StreetInsider's Ratings Insider shows two firms with Buy rating on Renren, six with Neutral/Hold and two with Sells. The highest price target for the stock is from Jefferies at $9 and the lowest is $5.25 from Macquarie.
The consensus estimate for FY11 is a loss of $0.03 on $118.44M in revenue. However, Wall Street analysts predict 2012 to be breakeven on revenue of $177.27M. That's a significant revenue growth outlook and the company shows $1.2B in cash on the balance sheet. Profit margins have lagged and enterprise value is $98.60M compared to the company's current market cap of $1.36B.
Note - Last month several Chinese Internet stocks were hit after Muddy Waters wrote a negative report on Focus Media (Nasdaq: FMCN). Other stocks negatively affected were Baidu (Nasdaq: BIDU), Youku.com (NYSE: YOKU), Sohu.com (Nasdaq: SOHU), and E-Commerce Dangdang (NYSE: DANG). BIDU is the only stock in the group that should finish higher for the year.
Renren shares have absolutely plummeted since going public on May 4th. After pricing at $14 and opening for trade at $19.80, the stock surged to a high of $24 on that day. Shares are now down a jaw-dropping 85 percent. To put it simply, Wall Street hasn't been too kind to Chinese Internet stocks.
StreetInsider's Ratings Insider shows two firms with Buy rating on Renren, six with Neutral/Hold and two with Sells. The highest price target for the stock is from Jefferies at $9 and the lowest is $5.25 from Macquarie.
The consensus estimate for FY11 is a loss of $0.03 on $118.44M in revenue. However, Wall Street analysts predict 2012 to be breakeven on revenue of $177.27M. That's a significant revenue growth outlook and the company shows $1.2B in cash on the balance sheet. Profit margins have lagged and enterprise value is $98.60M compared to the company's current market cap of $1.36B.
Note - Last month several Chinese Internet stocks were hit after Muddy Waters wrote a negative report on Focus Media (Nasdaq: FMCN). Other stocks negatively affected were Baidu (Nasdaq: BIDU), Youku.com (NYSE: YOKU), Sohu.com (Nasdaq: SOHU), and E-Commerce Dangdang (NYSE: DANG). BIDU is the only stock in the group that should finish higher for the year.
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