Hello my friends,
I really do not have too much to report. The market has been up or down more than 400 points in each of the last four days. It's a wild ride. One commentator said, "the market is a porpoise." Another cliche, but a good one.
There will be more of the same as the scrutiny is high. Everyone is watching and looking for any type of good or bad news at all. One thing you can do is keep your powder dry. There will be really good buying opportunities. These situations always produce such.
About RENN. Again this is the Facebook of China. Maybe there are more companies over, even private ones. After all, The American Facebook is still private, trying to go public at the end of September or the first part of October. Anyway, RenRen came out with great numbers after the market closed today. Sales were up. Advertising revenue was up. Gross profits and net profits were substantially better than last year (when it was still private). Activity, meaning subscriptions/users were up and increasing.
I thought this spelled a solid increase, but remember the old stock market maxim: "Buy on rumor, sell on fact (news)." And then the inevitable happened. The CEO, or some mucky-muck (I don't know how to say that in Chinese), said that they had a lot of competition. So, down it went. It was off about $1, to around $6.80. It closed in regular trading at $7.77. This morning is is up to around $8.08.
I don't like after hour trading. Many people lose money. The stocks are thinly traded, usually, and I don't think it's a fair reflection of pricing. So tomorrow will be important. Also note that our Friday here is China's Saturday, and their market is closed. Expiration is next Friday and it should be a good ride.
More later, Wade