RENN Fund Inc RCG

Financial Services Asset Management

RENN Fund, Inc. (the Fund) is a registered, non-diversified, closed-end management investment company. The investment objective of the Fund is to provide shareholders with above-market rates of return through capital appreciation and income by investment process that invests in a variety of financial instruments, including common stocks, fixed income and other instruments. In addition, the Fund may sell short stocks, exchange traded funds and exchange traded notes. It invests in various sectors, including aerospace and defense; communication services; marine shipping; metal mining; medicinal chemicals and botanical products; oil and gas; other financial investment activities; real estate; securities and commodity exchanges; technology services; surgical and medical instruments and apparatus, and securities, commodity contracts and other financial investments and related activities. Horizon Kinetics Asset Management LLC is the investment advisor of the Fund.

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RENN Fund Inc > valution ridiculous? Way undervalued?

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Comment by SamRothsteinon Feb 01, 2021 3:23pm

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Post# 32439055

RE:valution ridiculous? Way undervalued?

I believe it is just more selling from people that bought in really low from March to July. They got a lot of their shares bought in tender but they are selling the rest which is keeping downward pressure on shares. The good news is that they just hired what looks like a fairly high powered CFO from Equitable group, and they have also beefed up the board of directors with what looks like some fine additions. I think stock will be range bound though from $1.62 to $1.80 until we get favorable earnings report or news of acquisition. the increase in AUM for December reported on Jan 5 didn't do anything, but perhaps when they report for month of January if it is big enough it might do something. But I think we are still going to need favorable earnings report or acquisition to move the needle. Or of course a major player deciding to accumulate a position at this cheap level.

astutein wrote:
Can any one provide explanation.?

When RCGwas established expert valuators put a conservative value of$ 425,699 for 100% of GMP Richardson. 175,909,000 shares at $ 2.42)

Now trading at $ 1.70 times 155 million shares ( 175,990,000 minus sharebyback of 16 million.or a value of $ 1,70 x 155 = 263 million.

assets under administration has increased the last three months from28.1 billion to over 31billion as reported by company.

Anyone want to take run at above?