Beyond games, Renren has other assorted businesses including a group buying site called Nuomi.com and an online video site called 56.com. Both are in the top five in their respective categories and have been growing.

Nuomi appears to be on the cusp of profitability after a lot of steep losses for the past couple of years. The Chinese group buying market has thinned out considerably and Nuomi appear to be benefitting from that consolidation.

The big thing for me in getting long the stock is that cash balance. You're basically getting a company that is close to breakeven for its cash value. If it shows solid progress in any or all of their core businesses, I could see this stock doubling by the summer. If it doesn't come through this quarter, it will probably pull through in the quarter following. I like the risk/reward here.

At the time of publication, the author was long RENN and SINA.

Eric Jackson is founder and Managing Member of Ironfire Capital and the general partner and investment manager of Ironfire Capital US Fund LP and Ironfire Capital International Fund, Ltd. In January 2007, Jackson started the world's first Internet-based campaign to increase shareholder value at Yahoo!, leading to a change in CEOs in 2007. He also spoke out in favor of Yahoo!'s accepting Microsoft's buyout offer in 2008. Global Proxy Watch named Jackson as one of its 10 "Stars" who positively influenced international corporate governance and shareowner value in 2007.

Prior to founding Ironfire Capital, Jackson was President and CEO of Jackson Leadership Systems, Inc., a leadership, strategy, and governance consulting firm. He completed his Ph.D. in the Management Department at the Columbia University Graduate School of Business in New York, with a specialization in Strategic Management and Corporate Governance, and holds a B.A. from McGill University.

He was previously Vice President of Strategy and Business Development at VoiceGenie Technologies, a software firm now owned by Alcatel-Lucent. In 2004, Jackson founded the Young Patrons' Circle at the Royal Ontario Museum in Toronto, which is now the second-largest social and philanthropic group of its kind in North America, raising $500,000 annually for the museum. You can follow Jackson on Twitter at www.twitter.com/ericjackson or @ericjackson.

You can contact Eric by emailing him at eric.jackson@thestreet.com.

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