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Why SINA Corporation (NASDAQ:SINA) Could Have A Place In Your Portfolio

SINA Corporation (NASDAQ:SINA) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of SINA, it is a financially-healthy company with a an optimistic growth outlook, not yet priced into the stock. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my high-level commentary, read the full report on SINA here.

Excellent balance sheet and good value

SINA’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts’ consensus forecast growth be correct. Compared to the rest of the interactive media and services industry, SINA is also trading below its peers of similar sizes in terms of their assets. This bolsters the proposition that SINA’s price is currently discounted.

NasdaqGS:SINA Future Profit October 26th 18
NasdaqGS:SINA Future Profit October 26th 18

SINA’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. SINA appears to have made good use of debt, producing operating cash levels of 0.53x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NasdaqGS:SINA Historical Debt October 26th 18
NasdaqGS:SINA Historical Debt October 26th 18

Next Steps:

For SINA, I’ve compiled three relevant aspects you should further examine:

  1. Historical Performance: What has SINA’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  2. Dividend Income vs Capital Gains: Does SINA return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from SINA as an investment.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SINA? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

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