The Pacific Crown Securities released a research report today

Beijing time November 30 morning News, the Pacific Crown Securities published a study today, the company's Nyse:renn stock rating maintained in the "with the market flat" (sector perform) unchanged.

The following is a summary of the contents of the report:

Third-quarter results are in line with expectations, but performance forecasts suggest companies continue to face difficulties

Conclusion：

Revenue forecasts suggest that the commercialization of Renren's social networks faces further difficulties. We believe that the kinetic energy before the second half of 2014 is limited. Given the net cash balance of $909 million per person, we also consider that there are limited downside risks.

-third-quarter results in line with our expectations: Renren's third-quarter revenue was 47.6 million U.S. dollars, slightly below our expected $48 million trillion, but higher than expected gross margins and lower-than-expected operating expenses led to a $0.05 loss per share, better than our expected loss of $0.08 per share.

-Fourth Quarterly performance Outlook: The fourth-quarter performance Outlook shows that the commercialization problem will continue: we believe that the commercial barriers to advertising revenue flows for all companies will remain because their users are moving to the mobile sector, where the commercialization of advertising is challenging.

In the game area, some of the games that were originally expected to be launched need further testing and are postponed. The revenue outlook for the quarter was $30 million trillion, below our expected $48.5 million trillion, but the decline of $5 million to 6 million dollars would come from stripping the sticky rice network.

-We believe that the kinetic energy of the company is limited. Given the difficulty of commercializing the mobile ad business, we are concerned about the near-term potential of its gaming business. However, the recent development of the gaming business of Renren has encountered problems, and we believe that the visibility of its recent major recovery is low.

Renren holds about $909 million in net cash (2.46 US dollars per share); We believe that, while the company may consume 30 million to 40 million dollars a quarter of cash from its strategic choice of assets such as gaming operations and 56.com, the downside risks to its current share price are limited.