Renren Story

<div class='circular--portrait' style='background:#FF0F00;color: #FFFFF0;font-size:3em;'>REN</div>
RENN -- USA Stock  

USD 5.26  0.15  2.77%

The stock is still going through an active upward rally. As many baby boomers are still indifferent towards consumer cyclical space, it makes sense to break down Renren as a potential position. We will inspect the reasons why it is still possible for the company to generate above-average margins given the latest economic outlook.
Published over a month ago
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Do analysts believe Renren (NYSE:RENN) will continue to rise?
Renren is UNDERVALUED at 4.28 per share with modest projections ahead. We provide trade recommendations to complement the recent expert consensus on Renren Inc. Our dynamic recommendation engine exercises a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time.
What is the right price you would pay to acquire a share of Renren? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor 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.

Is Renren a risky opportunity?

Let's check the volatility. Renren is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Renren (NYSE:RENN) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. picking up a share of a Renren stock makes you a part-owner of that company.

Our perspective of the latest Renren rise

The value at risk is down to -9.7 as of today. As of the 19th of September, Renren holds the risk adjusted performance of (0.048372), and Coefficient Of Variation of (1,938). Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Renren, as well as the relationship between them. Put it differently, 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 were able to analyze and collect data for nineteen technical drivers for Renren Inc, which can be compared to its competitors. Please check Renren Inc variance, value at risk, as well as the relationship between the Value At Risk and skewness to decide if Renren Inc is priced some-what accurately, providing market reflects its current price of 2.93 per share. Please also confirm Renren Inc total risk alpha, which is currently at (1.23) to check out the company can sustain itself at a future point.

Our Final Perspective on Renren

Whereas some 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 Ellen Johnson 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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