SINA (SINA) Weak On High Volume Today

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

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 $55.8 million.
  • SINA has traded 332,946 shares today.
  • SINA is trading at 2.39 times the normal volume for the stock at this time of day.
  • SINA is trading at a new low 3.02% 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 57. Currently there are 5 analysts that rate SINA a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for SINA has been 1.4 million shares per day over the past 30 days. SINA has a market cap of $2.5 billion and is part of the technology sector and internet industry. The stock has a beta of 1.76 and a short float of 4.1% with 1.80 days to cover. Shares are up 15.4% 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 revenue growth, compelling growth in net income and reasonable valuation levels. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:
  • SINA's revenue growth has slightly outpaced the industry average of 5.9%. Since the same quarter one year prior, revenues slightly increased by 7.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Despite currently having a low debt-to-equity ratio of 0.37, 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 6.18 is very high and demonstrates very strong liquidity.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Internet Software & Services industry and the overall market, SINA CORP's return on equity is below that of both the industry average and the S&P 500.
  • SINA has underperformed the S&P 500 Index, declining 9.08% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

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