Is Sina Corp. Doomed to Keep Investors Away?
T = Technicals on the Stock Chart are Weak
As of December 4, Sina’s stock price was 10.76 percent below its 20-day simple moving average, or SMA; 20.43 percent below its 50-day SMA; and 21.09 percent below its 200-day SMA.
Since the beginning of 2012, the stock has been in a pronounced downward trend, losing 24.3 percent of its value this year to date, and 36.56 percent year over year.
For comparison, shares of Sohu are down 27.35 percent this YTD while shares of NetEase are down 8.20 percent for the period.
E = Earnings are Increasing Quarter over Quarter
Sina has a fairly strong revenue history but a weak earnings history. Revenues have increased in three out of the last four years, growing over 50 percent in 2008, dropping less than 3 percent in 2009, growing 12 percent in 2010, and nearly 20 percent in 2011.
|Revenue ($) in thousands||246,127||369,587||358,567||402,617||482,829|
|Diluted EPS ($)||0.96||1.33||6.95||(0.31)||(4.64)|
The quarter-to-quarter picture reveals a company struggling to maintain revenues but regaining some ground with two consecutive quarters of positive earnings.
|Sept. 2011||Dec. 2011||Mar. 2012||June 2012||Sept. 2012|
|Revenue ($) in millions||130.29||133.37||106.22||131.60||152.38|
|Diluted EPS ($)||-5.10||0.08||-0.21||0.49||0.14|
That massive earnings hit in the third-quarter of 2011 is due to a write down on investments, and is the driving force behind the earnings loss for 2011.