Trade-Ideas: SINA (SINA) Is Today's "Dead Cat Bounce" Stock
Trade-Ideas LLC identified
(
) as a "dead cat bounce" (down big yesterday but up big today) 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 $52.0 million.
- SINA has traded 110,296 shares today.
- SINA is up 3.3% today.
- SINA was down 5% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in SINA with the Ticky from Trade-Ideas. See the FREE profile for SINA NOW at Trade-Ideas
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 12. Currently there are 3 analysts that rate SINA a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for SINA has been 619,500 shares per day over the past 30 days. SINA has a market cap of $3.3 billion and is part of the technology sector and internet industry. The stock has a beta of 1.14 and a short float of 2.4% with 1.24 days to cover. Shares are down 7.9% year-to-date as of the close of trading on Friday.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
Analysis:
rates SINA as a
. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and expanding profit margins. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 248.6% when compared to the same quarter one year prior, rising from -$10.31 million to $15.32 million.
- SINA's revenue growth trails the industry average of 20.8%. Since the same quarter one year prior, revenues slightly increased by 7.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
- Despite currently having a low debt-to-equity ratio of 0.31, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that SINA's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.88 is high and demonstrates strong liquidity.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Internet Software & Services industry and the overall market, SINA CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full SINA Ratings Report.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
