Renren is a Chinese social networking site company. While several Chinese companies have been discovered to be frauds (they were able to hide their fraudelent activity more effectively because they came into the US capital markets through the back door of a reverse takeover), Renren deserves some credit for entering the US through an IPO and undergoing more disclosure of its financials.
Nevertheless, short sellers are quickly ramping up positions in Renren, as shown in the chart below. Renren first started trading on May 4 at $18. Five days later on May 9, when RENN was trading at $16, brokers borrowed 1.8 million shares, but paid a relatively high fee for the privelege. Over the past ten days, an additional 9 million shares have been borrowed (and shorted) and the fee is very high at 3,100 basis points.
Regarding LinkedIn, as soon as I see data on borrowing and shorting of LinkedIn’s shares, I’ll share it.