May 16, 2011
SpeculatingStocks.com Stock Pick: Renren Inc. (RENN)
Stock Price: $13.16
Renren Inc. operates a social networking Internet platform in China. Its platform enables users to connect and communicate with each other; share information and user-generated content; play online games; listen to music; and shop for deals.
RENN operates a site that has quickly become known as the "Facebook of China." It just IPO'd recently and traded to as high as $24.00, which many analysts saw as significantly overvalued. The company at $13.16 is being valued at a market cap of around $1.31 billion.
We believe now is a much better time to enter RENN shares. RENN is a well known name already and we expect it to have volatile swings. The volatile downside swing has already occurred in RENN shares.
RENN just moved higher after seven straight down sessions. We believe that momentum could now swing to the upside and we could see a pretty decent move out of RENN.
RENN is one of the few social networking companies that are public right now. We believe that long-term that RENN could be the next BIDU type of story.
Speculative Score: 2
1 Being the Least Speculative and Most Confident
10 Being the Most Speculative and Possibly the Most Risky