SINA (SINA)

This is a very speculative growth play. The company is well positioned in the Chinese web market, and is profitable today - a requirement I have for any stock I invest in, however, the performance of this stock is reliant upon a boom in Chinese internet usage. An indirect play on the Chinese economy and the internet. If nothing else, I expect that it is possible that someone (Yahoo!, Google, etc.) could pick Sina up at a premium to current prices. Long term, I think it'll play out, but I recommend a fairly strong stomach for volatility.

I’m tired to hear “China” whenever there is a discussion about emerging markets since this viewpoint ignores the other growing markets outside of the BRIC countries like Turkey or South Africa. However, I must admit that due to its size, China does present an investment opportunity over the next several years.

According to McKinsey, the share of the middle and affluent classes among Chinese urban households is supposed to grow from 23% in 2005 to 77% in 2015. In absolute numbers, the number of Chinese urban households with income classified as middle or affluent class is supposed to grow from 43 million in 2005 to 215 million in 2015. So, this number will quintuple over ten years.

Where will these middle and affluent classes spend their money? Maybe on national and international travel arranged online through Ctrip.com (CTRP), including travel to Olympics in 2008? And where will they spend their time online on the newly purchased PCs with Internet access that they can now afford? Maybe using Chinese portals like Sina.com (SINA) or search engines like Baidu.com (BIDU)? I answer “yes” to all these questions and put money on these companies.

SINA Corporation has a very strong online media platform, which focuses mainly on China and the millions of Chinese emigrants living worldwide. The company generates revenue through advertising, mobile value added services (MVAS), e-commerce and enterprise services.

Revenues in the first nine months of 2006 have been up mainly due to the increase in advertising revenues, but the decline in MVAS raises some concerns. The Chinese wireless services market is in its growth stage. The wireless services market is expected to grow 18% through 2010. Adding to the delight is the expected launch of 3G standard in 2007, which will hopefully increase its customer base, translating into higher revenues. But the competition seems to be high, as China being the largest market for mobile phones, is vulnerable to attack from foreign players, with the five-year protection of the telecom industry allotted by the WTO is coming to an end.

But there seems to be no other reason for SINA to sweat, as the Chinese online advertising market is expected to increase fivefold by 2010. The internet has a 20% penetration among the urban population in China and it is expected that banner or display advertising will remain the preferred form of online advertising over the next 3 years. A higher portion of the population is adopting broadband connections and to take maximum advantage of this trend, the company re-launched its video channel, which offers 30 channels providing programs all day.

It has also launched a new search engine called IAsk, which it plans to monetize in 2007. SINA sports have signed contracts with major European football leagues to host their official websites and also broadcast their games on Internet TV. Additionally 23 out of 25 top brand names in China, have selected SINA as their online marketing partner. With the company well positioned to ride the online advertising boom in China, year 2007 will be a revenue momentum story for the company.

I for one welcome our new Chinese Overlords.

Long term the internet sector is going to grow in China and be profitable.

We'll have to see how this market shakes out. Sina is a player in the Internet and wireless markets for China, and an early leader that has been hurt by some stagnation relative to its peers. I still think it's well positioned. But this volatile stock is about as volatile as one of its biggest threats: the Chinese government. Speculative.

These chinese stocks hopefully will perform well in the very long term, not apparently in the short term

Online, Media, China, The mumbers are solid

Overbought at this level. China stocks to for mild pullback. Growth has slowed for this stock at a high P/E.

Started breaking up already from the down trend line. I caught this alittle too late. Considering the china play with 2008 olympic SINA might get some extra attention with the other china stocks.

This stock is overvalued at $37, it will a great investment if the stock price under $10.

In the run up to the olympics, it is prepering well with all kind of initiatives. Among them a reporting group which will provide stories from the games in six languages. Arabic,Chinese,French and so onn. Stong on bloggs! Buy on 19-10-2007 dip!

Overpriced.

the chinese yahoo

I bought this stock on a MF recommendation. The financials look good and I've made a lot of $$$ on it. It is (for me) almost a double bagger. I look for it to become a triple bagger.

Fast Money's Tim Seymour says that the only China plays he likes are internet and gaming. He likes private companies, not government regulated, that have the ability to take advantage of a growing middle class. Baidu and Sohu get all the ink, but Sina is just finished reporting a red hot quarter. Only 12% of the Chinese have internet, so the growth potential is amazing for any company in the gaming and internet sector, so I think Seymour is spot on with these. Look at Baidu, Sohu, Sina, Giant Interactive, they are the companies moving big. China Mobile, Petrochina they're flat, flat, flat as the China government regulates them in some way.

Too much global instability will keep investors unattracted to this stock, speculative as this market is already. In the long run, I think this will be the market to be in if the US does not get our collect buttocks back into the dominance and out of the PC game. Islamic fundamentalists and hard-line regimes either will keep things unstable and eat away at our lead or we are going to take a stand and knock them down. China is led by one such regime and I think the carry-over between the crazy version of the muslims and the dictatorial chi-coms is too great to recommend SINA over the next few months... or even years. They have too much of a stronghold over what their people do. I don't like what Google did to the Chinese people and I don't think SINA is going to fare better. The leaders aren't ready or pressed enough for freedom yet!

What makes this company special? They are a web site in China...big freaking deal! Sustainable competitive advantage? Nada!

Future penny stock.

The olympics will be the turn around of the foreign internet portals.