Option Investor
New Plays
Printer friendly version
New Plays
Long Plays
Short Plays

New Long Plays

None today.

New Short Plays

Sina.com - SINA - close: 27.90 change: -0.24 stop: 29.31

Company Description:
SINA Corporation is a leading online media company and value-added information service (VAS) provider for China and for global Chinese communities. With a branded network of localized web sites targeting Greater China and overseas Chinese, SINA provides services through five major business lines including SINA.com (online news and content), SINA Mobile (mobile value-added services), SINA Online (community-based services and games), SINA.net (search and enterprise services) and SINA E-Commerce (online shopping and auctions). Together these units provide an array of services, which include regional focused online portals, mobile value-added services, search and directory, interest-based and community-building channels, free and premium email, online games, virtual ISP, classified listings, fee-based services, e-commerce, and enterprise e-solutions. (source: company press release or website)

Why We Like It:
It looks like investors were not impressed with SINA's press release today about the company's launch of a self-developed search engine called "iAsk". The rest of the Internet sector, Google excluded, also looks weak and prone to more profit taking ahead. Technically we notice that SINA has broken down below its six-week trendline of support about four days ago when it broke below its simple 50-dma. Today's decline under the $28.00 level is another sign of weakness. The Point & Figure chart is already bearish and currently points to a very bearish $2.00 price target. We are going to suggest bearish positions here and target the April lows with a $25.50-25.75 range. We'll try and limit our risk with a stop loss at $29.31. More aggressive players can put their stop above the 200-dma near $30.00. We do plan on exiting ahead of SINA's late July earnings report.

Picked on June 30 at $27.90
Change since picked: - 0.00
Earnings Date 07/26/05 (unconfirmed)
Average Daily Volume: 1.4 million

Premier Investor New Play Archives