Wednesday, May 4, 2011

So you want to invest in RenRen the next best thing?

Renren issued its IPO this week.  For those of you how don't know, Facebook available in China.  Thus, realizing the success of Facebook, Renren just knocked off the whole-site, just like it was an iPhone or popular new DVD.  Thankfully for Chinese companies, the Chinese government doesn't get bothered by US patents.  So the question is now that Renren is publicly traded in the US and Facebook is not, is Renren just as good?  According to a new MarketWatch article the answer is an astounding NO.  For no other reason than the lack of transparency into Chinese companies.  Keeping this thought alive, Renren had to restate some numbers its initial prospectus.  Also, a board member already stepped down in light of some accounting irregularities.  Hmmmmm, knowing all that, is the temptation too great to avoid the potential home run?  I have often thought of living life vicariously as a great action movie star, but I've never contemplated purchasing securities vicariously.  Maybe this time will be the first.

Is Renren a buy in place of Facebook?

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