Renren Story

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RENN -- USA Stock  

USD 5.20  0.06  1.14%

Given the investment horizon of 60 days, Renren is expected to under-perform the market. In addition to that, the company is 8.93 times more volatile than its market benchmark. It trades about -0.01 of its total potential returns per unit of risk. The DOW is currently generating roughly 0.09 per unit of volatility. Although many risk-takers are getting more into consumer cyclical space, some of us are not very happy with Renren's current volatility. We will inspect if the expected returns on Renren will justify its current volatility. The latest Renren risk factors may impact the value of the stock as we estimate Renren as currently undervalued. The real value is approaching 4.16 per share.
Published over a month ago
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Should you exit your Renren (NYSE:RENN) position after the latest rise?
Renren Inc conducts business under Consumer Cyclical sector and is part of Auto & Truck Dealerships industry. The company holds a Beta of 0.657, which implies possible diversification benefits within a given portfolio. Let's try to break down what Renren's beta means in this case. As returns on the market increase, Renren returns are expected to increase less than the market. However, during the bear market, the loss on holding Renren will be expected to be smaller as well. Even though it is essential to pay attention to Renren Inc current trending patterns, it is always good to be careful when utilizing equity existing price patterns. Our philosophy towards forecasting any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Renren Inc exposes twenty-eight different technical indicators, which can help you to evaluate its performance. Renren Inc has an expected return of -0.13%. Please be advised to check Renren Inc value at risk, as well as the relationship between the skewness and day median price to decide if Renren Inc stock performance from the past will be repeated at some point in the near future.
Volatility is a rate at which the price of Renren or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Renren may increase or decrease. In other words, similar to Renren's beta indicator, it measures the risk of Renren and helps estimate the fluctuations that may happen in a short period of time. So if prices of Renren fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.

How important is Renren's Liquidity

Renren financial leverage refers to using borrowed capital as a funding source to finance Renren Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Renren financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Renren's total debt and its cash.

How Renren utilizes its cash?

To perform a cash flow analysis of Renren, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Renren is receiving and how much cash it distributes out in a given period. The Renren cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

What is driving Renren Investor Appetite?

The entity reported the previous year's revenue of 349.78 M. Net Loss for the year was (51.09 M) with profit before overhead, payroll, taxes, and interest of 2.89 M.

Renren implied volatility may change after the rise

Latest kurtosis is at 8.05. Renren Inc is displaying above-average volatility over the selected time horizon. Investors should scrutinize Renren Inc independently to ensure intended market timing strategies are aligned with expectations about Renren volatility.

Whereas few other entities under the auto & truck dealerships industry are still a bit expensive, Renren may offer a potential longer-term growth to institutional investors. The inconsistency in the assessment between current Renren valuation and our trade advice on Renren is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Renren.

About Contributor

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 Vlad Skutelnik do not own shares of Renren Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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