writser Posted June 22, 2018 Share Posted June 22, 2018 Well, there is no borrow so that's a bit of a theoretical question. But I'd say it is trading on the high side given where it traded in the past (and horrible mgmt), lots of bots are going crazy on Twitter & huge premarket volume so it might be a bit of a squeeze / pump. On the other side: I had no position yesterday as I was not utterly sure that there wouldn't be a 10% Chinese withholding tax (can somebody who held shares overnight clarify that?). That would be a perfectly fine alternative explanation of today's price action. So I'm on the sidelines. If I had to guess I'd say it will trade lower after a week. Link to comment Share on other sites More sharing options...
hillfronter83 Posted June 22, 2018 Share Posted June 22, 2018 Well, there is no borrow so that's a bit of a theoretical question. But I'd say it is trading on the high side given where it traded in the past (and horrible mgmt), lots of bots are going crazy on Twitter & huge premarket volume so it might be a bit of a squeeze / pump. On the other side: I had no position yesterday as I was not utterly sure that there wouldn't be a 10% Chinese withholding tax (can somebody who held shares overnight clarify that?). That would be a perfectly fine alternative explanation of today's price action. So I'm on the sidelines. If I had to guess I'd say it will trade lower after a week. I can confirm that there wasn't withholding tax for the dividend. There is probably pump and dump in the short term. However, the underlying business is pretty good, if not great. They started used car business in 2017 and now it's about 90% of the company with quarterly revenue of $123m. At $2/share, the whole company is valued at $137m. In comparison with RMBL, it's valued at $80m with unproven market and 1/10 of revenue. Over 7 times of book value. I wouldn't bet against it at this price even with "horrible management". Link to comment Share on other sites More sharing options...
writser Posted June 22, 2018 Share Posted June 22, 2018 Interesting price action today, that's for sure :) Link to comment Share on other sites More sharing options...
Picasso Posted June 22, 2018 Share Posted June 22, 2018 Nicely done Link to comment Share on other sites More sharing options...
writser Posted September 6, 2018 Share Posted September 6, 2018 For those of you who were interested in the stub: it is now down significantly since the special dividend on no news (as far as I know). I've never really looked at the underlying business. FWIW this is not the first time one of these 'special dividend' situations is trading at a (what I consider) elevated valuation just after the special dividend. For example, a similar thing happened with Forward Pharma last year. Something to take into account whenever a similar situation occurs in the future. Not sure why it happens and if it will happen again but given that these stubs are somehow very hard/expensive to borrow it might be worthwile to hold on to your position a little longer than you would usually be inclined to. Of course, that would mean holding over the record date so you have to be sure about any tax consequences. Nevertheless, in both cases I sold way too soon (at least in hindsight). Link to comment Share on other sites More sharing options...
writser Posted February 19, 2021 Share Posted February 19, 2021 A potentially interesting second act: https://seekingalpha.com/article/4406707-renren-shareholders-claim-huge-sofi-stake-via-little-noticed-legal-fight Link to comment Share on other sites More sharing options...
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