SINA market cap 4.1 Billion
net cash 1.5 Billion
Weibo holding worth 2.4 Billion
E-House holding 125 Million
Tian Ge holding 260 Million
Alibaba holding 120 Million
many people did want a piece of SINA and still do. Fosun International wanted a large chunk. Alibaba wanted a piece of Weibo and SINA controls Weibo. How much Alibaba do you think SINA owns?
I heard Ackman took a 9% stake and is buying options,
David Faber told me about it and Icahn just tweeted it.
"pot calling the kettle black"
why pick TSTN? what was the market cap at the time? did the CEO buy the stock? what was its public history or results?
you need to compare apples with apples and oranges with oranges
why not compare SINA to enron, WorldCom, Countrywide, or Chesapeake Energy.
This is a 20% purchase by the CEO. I'm not saying go out and buy the stock, I'm saying your analogy is off. Certainly it may not be a good sign, but the market is currently treating it like a good sign and that is what matters.
Best analogy is SINA itself where this happened before in 2000.
Why not highlight the Focus Media purchase in April. I think that was just as significant as the CEO purchase.
we have no idea if Chao got a loan for the stock purchase, whether he did or not it's still a positive statement he thinks the stock is worth more.
is it manipulation of a declining business or fraud??
unlikely a fraud as it would have been discovered being listed for 10 years.. but still a possibility. portal is certainly in decline, weibo is certainly going to see growth.
two important statements - what will the company do with all the cash?
second, nobody cared when the share count was falling 20% year over year with the buyback, they can't buy enough (see rising volume) when the share count goes up 20% as the ceo buys shares.
not sure your statement "be careful" adds any value at all
10 years of managing the company.
previous large gains on similar investments
last time management bought stock it double in 3 months. I expect similar if not more.
and buy stub listed WB stake. buying SINA would get full control of WB right before roll out of Alipay on Weibo platform. makes total sense.
let me help you out... if the buyout is coming it's 75-85 price. It's possible but not likely. It would explain why all the sudden the CEO wants to be a shareholder (and no, there is no insider trading laws in China). However it's also equally possible the company will make an acquisition.
why buy? it's at 56 now.. if it gets to 58/59 today.. are you really suggesting to buy for 1% -3% return??????