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SEC Steps In To Bail Out Chinese IPO Bubble, Activates Short Sale Rule 201 In Plummeting RenRen

Tyler Durden's picture




 

After IPOing, with so much Bob Pisani fanfare, RenRen, has just forced the SEC to activate Short Sale Rule 201, having plunged from $22 yesterday to below $16 today, and just $2 away from its IPO price, which at this rate will be taken out shortly. Somehow we doubt the CME will hike "overvalued Chinese stock" margins today. Still, we wonder if the Chinese IPO bubble finally over? And as for RENN, who would have thought a company IPOing at 72x sales may be poised for a collapse. In other news, is the "market contingent" LBO of the NYSE by the Nasdaq now pulled?

 

 

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Thu, 05/05/2011 - 10:47 | 1243192 Clorox Cowboy
Clorox Cowboy's picture

The beginnings of sanity...?  I hope so, let's get this end-of-the-world show started already!

Thu, 05/05/2011 - 12:09 | 1243644 Urban Redneck
Urban Redneck's picture

Sanity?  Shapiro and the SEC are nothing but Banker turd polishers.  They could at least look at the required filings before allowing an issue to list instead of shoveling bs201 after the fact.

Thu, 05/05/2011 - 10:50 | 1243205 SheepDog-One
SheepDog-One's picture

My God a stock fell? Pull out all the stops get that stock back to where it should be, UP of course!

Thu, 05/05/2011 - 10:49 | 1243209 Rainman
Rainman's picture

Chinese Fakebook doesn't compute. Who wants Bejing tracking your every thought...??

Thu, 05/05/2011 - 11:01 | 1243270 wang
wang's picture

Who wants Bejing tracking your every thought...??

I'm confused what's is the diff between Bejing and Washington?

Thu, 05/05/2011 - 11:12 | 1243319 Id fight Gandhi
Id fight Gandhi's picture

DC gives you foreplay before they jam it in.

Thu, 05/05/2011 - 10:52 | 1243212 SirIssacNewton
SirIssacNewton's picture

72x times earnings.....its 2000 again.  I thought we did this once already.....didn't we learn anything?

Thu, 05/05/2011 - 11:07 | 1243300 Hephasteus
Hephasteus's picture

Yep we learned that dot com pump and dump had many names. Trying to translate any of those into chinese isn't going to fool many people.

If it pumped and wouldn't go away during dot com. It's going to be a ponzi this time.

There's new kids on the block but they all wear the same style suits.

Get ready for bunch of stuff to head for the 4 dollar mark.

Thu, 05/05/2011 - 11:10 | 1243303 hedgeless_horseman
hedgeless_horseman's picture

72x sales. 

Thu, 05/05/2011 - 10:50 | 1243223 Cdad
Cdad's picture

Amazing.  When you think the crony media cannot get worse, it does.  These guys at the BlowHorn [CNBC]...ALL OF THEM...have been pumping these things, directing Average Joe to embrace the miracle of the Chinese IPO.  Where are these corrupt idiots now?  [crickets]

We really have arrived at that point when either the rule of law emerges and again holds sway...or the only option left is to revolt.  UNBELIEVABLE how it gets worse and worse each day.

Thu, 05/05/2011 - 10:58 | 1243266 chrisd
chrisd's picture

That will teach me to try and earn 20% overnight

Thu, 05/05/2011 - 11:02 | 1243274 bankonzhongguo
bankonzhongguo's picture

Everyone is going to run to cash as QE2 runs out.

Everything is going down in a selling panic so that the debt ceiling gets raised and another money give away is concocted.

 

 

Thu, 05/05/2011 - 11:15 | 1243340 chrisd
chrisd's picture

So buy the dollar?

Thu, 05/05/2011 - 11:03 | 1243275 bankonzhongguo
bankonzhongguo's picture

Everyone is going to run to cash as QE2 runs out.

Everything is going down in a selling panic so that the debt ceiling gets raised and another money give away is concocted.

 

 

Thu, 05/05/2011 - 11:07 | 1243313 carbonmutant
carbonmutant's picture

Most Chinese companies belong on the Pink Sheets... until they can prove otherwise.

Thu, 05/05/2011 - 11:12 | 1243320 hedgeless_horseman
hedgeless_horseman's picture

Commies list on the pinko sheets.

Thu, 05/05/2011 - 11:25 | 1243396 carbonmutant
carbonmutant's picture

Sounds like a plan...

Thu, 05/05/2011 - 11:17 | 1243369 willien1derland
willien1derland's picture

</Sarcasm on>BUT BOB PISANI ENDORSED IT!!! Ohhh sure, and the next thing you're going to tell me is that Steve Liesman is in Europe to interview Trichet after he made a fool of himself during the Bernank's lie session <Sarcasm off/>

Thu, 05/05/2011 - 12:03 | 1243602 JW n FL
JW n FL's picture

China: The Rich Are Fleeing http://goo.gl/FSTw4

 

http://www.zerohedge.com/article/massive-raw-gold-shortage-china-supply-and-demand-crunch-looms

 


CHINA ON LINE TO INVEST $1.5 TRILLION on 7 key Industries while America gives tax cuts to Super Rich ~ http://goo.gl/H1NJv

 

China is Great!

 

Look at all the construction!

 

China's empty City - http://www.youtube.com/watch?v=0h7V3Twb-Qk 

 

China's empty Mall - http://video.pbs.org/video/1218530801/

 

http://www.youtube.com/watch?v=m_hCvRx_dYE Bloomberg.. China.. recent. China Bank Stress Test for a 50% Loss in Value for Real Estate.. POP! GOES! THE WEASEL!

Thu, 05/05/2011 - 12:27 | 1243740 TruthInSunshine
TruthInSunshine's picture

Madoff had nothing on China, either.

China = ginormous scam.

Did anyone read the story about how Chinese speculators are storing massive mounds of copper all over China?

Are they going to try and turn it into gold? Or claim that they did/can? And do an IPO of the company that allegedly did so?

Thu, 05/05/2011 - 12:39 | 1243796 TruthInSunshine
TruthInSunshine's picture

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