SINA Corporation$40.32(2.91%)

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dmoney Well-calibrated. Correct 80 % of the time. 4199.01 (edited)
$50 $100 forecast for 2020-12-31

Sina is a Chinese online media company that has been around since 1999. Sina provides news related products in a whole range of different verticals. Sina has not been an enjoyable investment, falling 70% from it’s top back in 2010! What makes Sina interesting is not it’s media news business (Who cares? Definitely has not exited investors for the last decade), but their 46% stake in Weibo (Chinese twitter). Sina’s current market cap is $3 billion and their Weibo shares alone are worth around $5 billion, AND they’ve got $2.9 billion in cash. They do have some debt and are currently priced at P/B 1.

Apparently it seems like investors are afraid that Sina will be busy burning cash for the next few years, ensuring that the investors never will get their values realised. Recently however Sina announced that they will buy back $500 million worth of their own shares, which built some confidence in investors that Sina’s management is not complete idiots after all. The share quickly increased by 20%.

Sina then is mostly about Weibo. The Weibo stock is down about 64% from the top, maybe somewhat because of their slowing growth. Weibo is however very profitable and with $2.4 billion in cash, giving them financial leeway.

Sina’s own media news business is actually still growing and they are profitable and priced at a forward P/E of 15.

I believe Sina is way underpriced and may be target for an acquisition. Their core business is not sexy and Weibo have had some issues lately, but Sina’s share repurchasing program seems to me to prove that their management are intending to realise shareholder value.

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forking 0
$34 $40 forecast for 2020-01-31

Chinese stocks in general have a big discount compared to similar US stocks. This may be for good reasons; 1. The Chinese government can create regulations as they like which can change the competitive environment 2. Shady audit practices 3. Your shares are owned by a shell company type of arrangement. You don't actually own shares directly in the company

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insighter 0 (edited)
$25 $35 forecast for 2020-12-31

Solid, but very non exciting without good growth prospects.

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