SINA (SINA) Highlighted As Weak On High Volume

Trade-Ideas LLC identified SINA (SINA) as a weak on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

SINA

(

SINA

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified SINA as such a stock due to the following factors:

  • SINA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $43.2 million.
  • SINA has traded 242,947 shares today.
  • SINA is trading at 4.45 times the normal volume for the stock at this time of day.
  • SINA is trading at a new low 5.05% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on SINA:

SINA Corporation, through its subsidiaries, operates as an online media company in the People's Republic of China. SINA has a PE ratio of 46. Currently there are 4 analysts that rate SINA a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for SINA has been 1.0 million shares per day over the past 30 days. SINA has a market cap of $2.8 billion and is part of the technology sector and internet industry. The stock has a beta of 1.10 and a short float of 2.8% with 1.69 days to cover. Shares are up 28.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates SINA as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • Compared to its closing price of one year ago, SINA's share price has jumped by 26.20%, exceeding the performance of the broader market during that same time frame. Although SINA had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 15.1%. Since the same quarter one year prior, revenues rose by 14.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Despite currently having a low debt-to-equity ratio of 0.39, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.98 is very high and demonstrates very strong liquidity.
  • SINA CORP's earnings per share declined by 24.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, SINA CORP increased its bottom line by earning $2.56 versus $0.59 in the prior year. For the next year, the market is expecting a contraction of 77.5% in earnings ($0.58 versus $2.56).
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Internet Software & Services industry average. The net income has significantly decreased by 29.8% when compared to the same quarter one year ago, falling from $16.62 million to $11.67 million.

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