), the Chinese internet media company with four primary business
including Sina Weibo, "China's Twitter" has filed documents to list
on a US exchange in the coming weeks/months. With all the
fanfare surrounding social media around the world, this filing has
been highly anticipated. Clearly the performance of other
Chinese internet companies like BIDU (
, the "Google of China") and Tencent (
) has rewarded western investors for their faith in the growth
coming from China's massive internet opportunity.
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Sina's stock has been under heavy pressure however as there is
concern they may be losing ground to the competition, notably
Tencent. After touching nearly $90/share in late 2013
the stock has been knocked down and closed today at $64.59(-1.7%)
before the announcement, but popped in the aftermarket on the
news. Despite growth of over 36% in subscribers and
tripling revenues at Weibo in 2013 it may be tough to stave off
arguably the most domain diversified internet company in China.
We see oversold conditions at present and decent technical
support for the stock at $60.
We will continue to keep you posted on the developments.