Sina (SINA, $40.49) gets buyout bid from New Wave

Shares of Sina Corp.  surged +10% in premarket trading Monday, after the China-based online media company said that it received a buyout bid from New Wave.

The buyout bid would value Sina at about $2.68 billion. According to Sina, New Wave offered to buy the shares it didn't already own for $41 each, which is 11.8% above Thursday's closing price of $36.67.

New Wave, incorporated in the British Virgin Islands, is controlled by Sina’s chairman and chief executive, Charles Chao. 

Sina’s board has formed a special committee to assess the proposed deal.

According to Tickeron, SINA's in Uptrend: Moving Average Convergence Divergence (MACD) Histogram just turned positive

This is a Bullish indicator signaling SINA's price could rise. Traders may explore going long on the ticker or buying call options. In 34 of 43 cases where SINA's MACD histogram became positive, the price rose further within the following month. The odds of a continued Uptrend are 79%.

Current price $40.49 crossed the resistance line at $38.99 and is trading between $41.36 resistance and $38.99 resistance lines. Throughout the month of 06/02/20 - 07/02/20, the price experienced a +14% Uptrend. During the week of 06/25/20 - 07/02/20, the stock enjoyed a +3% Uptrend growth.

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator exceeded the 0 level on July 02, 2020. Traders may consider buying the ticker or exploring call options. In 66 of 96 cases where the ticker's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 69%.

The price moved above its 50-day Moving Average, which indicates a change from a Downtrend to an Uptrend. In 29 of 43 similar backtested cases where SINA's price crossed above its 50-day Moving Average, its price rose further within the subsequent month. The odds of a continued Uptrend are 67%.

The 10-day Moving Average for this ticker crossed above its 50-day Moving Average on June 11, 2020, which can be construed as a buy signal, indicating that the trend is shifting higher. In 12 of 18 similar cases where SINA's 10-day Moving Average crossed above its 50-day Moving Average, the price rose further within the following month. The odds of a continued Uptrend are 67%.

The Aroon Indicator entered an Uptrend today. In 167 of 238 similar cases where SINA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 70%.

Bearish Trend Analysis

The Stochastic Indicator may be shifting from an Uptrend to a Downtrend. In 43 of 65 cases where SINA's Stochastic indicator exited the overbought zone, the price fell further within the following month. The odds of a continued Downtrend are 66%.

The higher Bollinger Band was broken -- a price fall is expected as the ticker heads toward the middle band, which invites the trader to consider selling or shorting the ticker, or exploring put options. In 29 of 44 cases where SINA's price broke its higher Bollinger Band, its price dropped further during the following month. The odds of a continued Downtrend are 66%.

Fundamental Analysis (Ratings)

Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 71%. During the last month, the daily ratio of advancing to declining volumes was 2.66 to 1.

The Tickeron Valuation Rating of 33 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.00) is normal, around the industry mean (16.91). P/E Ratio (21.24) is within average values for comparable stocks, (128.23). Projected Growth (PEG Ratio) (0.00) is also within normal values, averaging (2.22). Dividend Yield (0.00) settles around the average of (0.14) among similar stocks. P/S Ratio (1.02) is also within normal values, averaging (4.81).

The Tickeron SMR rating for this company is 33 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Price Growth Rating for this company is 50 (best 1 - 100 worst), indicating fairly steady price growth. SINA’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron PE Growth Rating for this company is 90 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SINA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock worse than average.

Contributor

Sergey Savastiouk|Expert

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.