Is Sina Corp. Doomed to Keep Investors Away?
With shares of SINA Corporation (NASDAQ:SINA) trading around $41.68, is SINA a BUY, a WAIT AND SEE, or a STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
Sina hit a 52-week low of $41.25 per share on December 5. The stock has trended downwards since the middle of September and suffered a sharp sell off on November 15 when it issued fourth-quarter guidance that came in below analyst expectations.
Catalysts are critical to discovering winning stocks. Check out our newest CHEAT SHEET stock picks now.
Some feather tussling at the Securities and Exchange commission on December 3 put the nail in the coffin, pushing the stock down 3 percent and toward its current lows.
E = Equity to Debt Ratio is as Close to Zero as it Gets
Sina’s debt-to-equity ratio is within a rounding error of zero. This is a strong position for any company to be in, but does not differentiate it so much from its major competition. NetEase, Inc. (NASDAQ:NTES) boasts the same debt-to-equity ratio, while Sohu.com (NASDAQ:SOHU) clocks in at just 0.20.
It’s also important to consider total cash and total debt, which for Sina is $696.25 million in cash, and no debt. NetEase tops the category with $2.38 billion in cash and no debt, while Sohu claims $894.25 million in cash and $222.35 million in debt.