There are mixed reviews regarding this IPO. Some say the books and numbers are cooked, others say that the facebook ban in China will make this facebook clone grow very fast. I'm looking for a year long investment. What do you think about it?
Some reviews (from positive to negative):
Similar IPOs charts:
Posted Apr 29, 2011, 3:06 AM UTC
Google, "China and stock fraud". Auditing in China is not like the US. Buyer beware, make sure you are being compensated for that excessive risk. Not only that but the public, government relationship can be pretty grey.
I guess it will be a little different in terms users. This is probably limited to China and maybe Taiwan.
Is this coming out on the nasdaq? I thought I read somewhere that it was. Because if its shanghai, then you're only allowed B shares I believe.
I've been looking into purchasing this on May 4th as well. I'm a little hesitant -- they're being valued as a $4 billion company, yet their income is $7 million /year. How does that add up? Speculation is high on this one, and may increase. My thoughts: This stock will either do two things: skyrocket the first year, or totally tank. I'm not putting my whole portfolio into it, but I'm going to buy a small percentage.
Just wondering if you bought any RenRen for their IPO?
A few things in your post stand out to me. Why a year long investment? You don't believe in this company long-term? I'm not critiquing your judgment more curious why a year. If they can be the Facebook of China, then they should do very well over the next several years.
I've also said this before but, IPOs I tend to avoid just because they are so hyped up. Most companies under perform from their IPO and immediate market prices.
I looked at your articles and saw some things which did impress me about this company. They're #15 most visited site in China, thats huge. China's internet users should explode in the next decade. A huge population, mostly rural, with a ton of wealth entering the country should lead to many more internet users.
My general opinion is pretty split. First I see what is probably going to be a red-hot IPO. The "next Facebook" based in China is going to get the growth bulls on board like few others. Just look at BAIDU being the "Chinese Google" and how much growth expectations they have. They have also grown very quickly, which will add more to the hype of the growth bulls and wallstreet. Now that we have been seeing a lot of really high valuations for tech companies it should be valued even higher (both public and private-Groupon is $25 Billion?, Opentable PE is 186). It will fly high no doubt. Right out of the gate. The question is, will it be worth this valuation? The bottom line is if it really is the "Facebook" of China, and can it maintain its position as such, then yes it is. Its going to be a sky high valuation, is the juice worth the squeeze? Also I would add waiting the initial 1-3 month period after the IPO... a lot of IPOs drop in price right after they enter the market.
Edit: Moved around some sentences the first time I wrote this, came off a little garbled.
Yea i was surprised with Groupon's valuation. How in the world can groupon be anywhere close to $25B???