Ren Ren (RENN) Eventually There is a Valid Price for Everything

There were all sorts of warts on “Chinese Facebook” (not really) Ren Ren (RENN) when it came public.  This did not stop the investment bankers from gifting their best customers with shares that could be flipped to the public in the low to mid $20s on IPO day.  While a complete bust, breaking below its IPO price of $14 within a week or two. While impossible to catch a falling knife, those who were genius enogh to buy at $6 could have made 100% in just under 2 weeks with a perfect entry and exit.  For the rest of us mere mortals, a nice opportunity to skim 20-30-40% in a very short period of time also existed.

A price around $8 to $10 was most likely far more reasonable to come IPO at, and without the hype of the first day pop, would have led to a far more stable course for the stock.  But the larger point is, there is a valid price point for everything – unfortunately, a lot of people learned that the hard way on this one.

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About Mark Hanna 543 Articles

Affiliation: Hanna Capital, LLC

Mark Hanna is President and Owner of Hanna Capital, LLC, a registered investment advisory firm. Mark has been a follower of markets since the late 80s, with a focus on individual equities since the mid 90s. He has been a well known commentator in the financial blogosphere for the past 5 years, following a career in corpoporate finance and accounting. Mark attended the University of Michigan where he graduated with a degree in Economics.

As an avid reader, Market Montage is the personal blogging site for Mark to share his views on economics, markets, and the like. Occasional cynicism and wit shall be deployed in his postings.

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