renren ipo Renren IPOKu6 Media Co., Ltd (KUTV:NASDAQ). is as an online video company in China, and it owns and operates ku6.com. The site is basically a social media site that operates an online video portal. Even though shares of KUTV have run from the low $4 range to almost $8, on the anticipation of the Renren IPO (RENN:NASDAQ) they have the potential to run higher. Renren is another Chinese Internet company that is in the social media space. The company has over 30 million use and thier site renren.com appears to be sticks. Users spend over 7 hours a month there. It sort of sounds like a poor man’s Facebook. But what’s wrong with that ?

Any individual who mildly follows the market nows that shares of RENN will trade next Wednesday. penny stocks a good investment Even though the deal has over 50 million shares most IPO experts feel a two to three point premium, or even more is likely. The market cap of Renren IPO will be roughly $4million at it’s suggested offering price. Now how do you play this ? Especially since IPO shares of RENN will be few and far between for retail investors. Institutions might sell stocks like Sina Corp. (SINA:NASDAQ) or Youku (YOKU:NYSE) simply to diversify, or they may look at cheaper sympathy plays like KUTV.

Before I wrote this piece I scoured the internet looking for Chinese social media penny stocks to add to my list of stocks. Surprisingly I found nothing remotely close. However, that’s when I stumbled across KUTV. It closed on Wednesday with a market cap under $250 million, even after its recent massive gain.

By no means am I saying to jump out tomorrow and buy shares of KUTV in the pre-market Thursday morning, but you should definitely add it to your list of stocks. A lot of the easy money has been made already, but it could still pullback. This small cap name fits nicely on a list, especially in between your large caps and penny stocks. I often write about sympathy plays in my frequently posted stocks to watch list, and KUTV seems to fit this description nicely.

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