Renren price slide is confusing
 | By Rifka Kats | Macroaxis Story |
This thesis is geared towards all Renren partners and investors who considers an exit from the corporation. I will inspect the possibilities of making Renren into a steady grower in November inspite the current mess. Renren responds to market. plenty of changes of the company Stock price has been a rough indication of what is happening in the market overall. Conflicting forward indicators of the corporation may also entail signs of long standing losses for the corporation partners. Macroaxis considers Renren to be extremely dangerous. Renren maintains Sharpe Ratio (i.e. Efficiency) of -0.0542 which implies the corporation had -0.0542% of return per unit of risk over the last 1 month. Macroaxis philosophy towards forecasting risk of any stock is to look at both systematic and un-systematic factors of the business, including all available market data and technical indicators. Renren exposes twenty-one different technical indicators which can help you to evaluate volatility that cannot be diversified away. Please be advised to check Renren Coefficient Of Variation of (1,808) and Risk Adjusted Performance of (0.07) to confirm risk estimate we provide.
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Reviewed by Raphi Shpitalnik
This firm average rating is Sell from 1 analysts. As of 14 of October Renren holds Coefficient Of Variation of (1,808) and Risk Adjusted Performance of (0.07). Compared with Fundamental Indicators, Macroaxis technical analysis interface allows you to check existing technical drivers of Renren as well as the relationship between them. In other words you can use this information to find out if the company will indeed mirror its model of past market data or the prices will eventually revert. We found nineteen technical drivers for Renren which can be compared to its competitors. Please check Renren Variance, Value At Risk as well as the relationship between Value At Risk and Skewness to decide if Renren is priced some-what accurately providing market reflects its current price of 0.663 per share. As Renren is a penny stock we also suggest to check out its Total Risk Alpha numbers.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Renren. Your research has to be compared to or analyzed against Renren's peers to derive any actionable benefits. When done correctly, Renren's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Renren Inc.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of Renren Inc. In general, sophisticated investors focus on analyzing Renren stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Renren's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Renren's intrinsic value. In addition to deriving basic predictive indicators for Renren, many experienced traders also check how macroeconomic factors affect Renren price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Renren's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Watch out for price decline
Please consider monitoring Renren on a daily basis if you are holding a position in it. Renren is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Renren stock to be traded above the $1 level to remain listed. If Renren stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How does Renren Stands against Peers?
Analyzing Renren competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Renren across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be. Check out Renren Competition DetailsBreaking it down a bit more
The recent decline in stock price has created some momentum for investors as it was traded today as low as 0.65 and as high as 0.67 per share. The company executives have failed to build on market volatilities in September. However, diversifying your overall positions with Renren may protect your principal portfolio during upcoming market swings. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 7.0032. The very high volatility is mostly attributed to the latest market swings and not very good earning reports from some ot the Renren partners. Renren makes 49.66 probability of bankruptcy. Renren is selling at 0.663. That is 0.51% increase. Today highest was 0.67. The bottom line, we belive that Renren is currently undervalued with close to average odds of financial distress in the next two years. Our immediate Buy/Hold/Sell recommendation on the corporation is Strong Sell.
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Renren Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.