SINA Corp: Why We Bought an Undervalued Stock

SINA Corp: Why We Bought an Undervalued Stock

Read our analysis and valuation of Chinese internet conglomerate SINA Corp and why we have added the stock to the Junto portfolio.
SINA Corp stock analysis
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Investors in SINA Corp have been on a roller coaster ride for quite some time. For the last 8 months, that’s been including me.

Take a look.

All time stock chart of SINA Corp

SINA is a Chinese internet holding company and creator behind the massive micro-blogging social platform, Weibo (pronounced “way-bwo” – yes, that last syllable is a hard one). Weibo is commonly known for being the Chinese equivalent of Twitter, but really is more a combination of Twitter and Facebook.

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8 Responses

  1. Nice write up Oliver. Out of curiosity, on your valuation how are you coming up with your reinvestment figures? How does your NPV look if SINA fails to grow?

    1. Thank you very much. The reinvestment figures are based on the sales to capital ratio assumed to remain at 1.

      If SINA fails to grow from this level, I find it appropriate to apply a multiple of 6 or 7 which makes about $2.2 to $2.6 billion of which the current market value reflects the lower bound. That is, of course, assuming that the business will bounce back to a normalized [no-growth] level from what will obviously be a tough year of 2020. But I find SINA Corp to be extremely cheap at these prices.

  2. now only the value of weibo is 3,6 b vs 2,2 b of sina market cap i hope mgmt make a bunch of buyback of stocks

  3. 03 april 2020

    Today I bought +150% more Sina @ 32 $, it’s the biggest position I ever had.

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