RENN started trading today, has been up to $24 and is now $19.50, after pricing at $14, the range top of the increased range.
Except for Youku.com (NYSE:YOKU), on average recent Chinese Internet stocks are down 28% in the aftermarket. Youku IPO’d on December 7, 2010 and is selling at 100 times sales. Youku increased from its IPO price 332%, with an aftermarket gain of 66%. Youku is considered one of the "Youtubes of China.”
Four Chinese Internet losers in the aftermarket:
- 21Vianet Group (NASDAQ:VNET): Data centers; April 20 IPO; 25% first day pop; -16% in the aftermarket.
- Qihoo 360 Tech (NYSE:QIHU): Browser & advertising; March 29 IPO; 135% first day pop; -24% in the aftermarket.
- E-CommerceChina (NYSE:DANG): One of the "Amazons of China"; December 7 IPO; 87% first day pop; -27% in the aftermarket.
- ChinaCache Int'l (NASDAQ:CCIH): Internet content & app delivery; September 30, 2010 IPO; 95% first day pop; -47% in the aftermarket.
At $24, RENN sold at 100 times annualized sales for the six months ended December 31, 2010. The respective price-to-sales numbers for other RENN price points are 90 at $19.50; 60 at the IPO price of $14; and 46 at the original price point of $10.
At $24, RENN was up 140% from the original price range mid-point of $10. At $19.50, RENN is up 95% from the original price range mid-point.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.