Sina: Time to Take Profits After Recent Run-up

Xiaofan Zhang submits:

Shares of Sina Corporation (SINA) have risen 16.6% since I published a positive article on its Twitter-like service Sina Weibo. Based on my latest analysis, Sina shares have risen too fast in the past several weeks. I remain positive on the long-term future of Sina, especially Sina Weibo, but I believe existing shareholders should now take profits at the current price level. My analysis is as follows:

Analysis of current market sentiment on SINA. Since Sina reported Q4 earnings on March 1, Wall Street analysts' consensus EPS estimates for its 2011 and 2012 fiscal years have dropped 14% and 8% respectively, according to data from Yahoo Finance. Despite these earnings downgrades, analysts' average price target on SINA has risen 17.8% to $90.5 since the Q4 earnings release, and shares of Sina have surged 26.2% since March 1. In my view, these seemingly conflicting data points have revealed the market's mainstream

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