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??????
I will give you three reasons:
1. CEO bought $456 million dollars or 19% of company last week.
2. WB, it's microblogging subsidiary is rocketing up, either on take-over speculation or anticipation the new business ventures with stake holder Alibab, such as Alipay, will greatly increase the value.
3. On a sum of the parts, you are getting the financial holders and struggling portal business for free.
Please short some shares.
something is certainly going on - I do think the Fosun International purchase of 9% in April was key. Either SINA is / was about to make a large investment or have some value accretive transaction that motivated Charles to take the 20% stake, or there was / is a buyout discussion that likewise called him to take a stake. What happened to the take-over provision that is anybody acquires more than 10% the company could issue shares at a discount to existing shareholders to ensure the company is not acquired at too low a price from a hostile acquirer? Guess that doesn't apply to Charles
Read up on the Fosun guys. They like to acquire things
Is it inside trading when Carl Icahn tweets that he's buying more AAPL stock or AAPL stock is worth X? Is it insider trading with Bill Ackman buys stock and call options in Allergan ahead of his firm and Valeant making an offer to buy the entire company?
Charles strikes back. Not bad. Certainly better than what Goldman helped you with before Weibo IPO.
We still have a ways to go Charles. Let's get the deal done with Guo!! It's not just all about your bank account, it's about shareholders as well, shareholders who have supported you and Sina for years.