Sina Story

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SINA -- USA Stock  

USD 42.93  1.09  2.61%

Sina is scheduled to announce its earnings tomorrow. While some of us are becoming more enthusiastic about communication services space, let's go over Sina Corporation in greater detail to make a better estimate of its debt utilization. We will analyze if it could be a much better year for Sina shareholders.
Published over three weeks ago
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Should I drop my Sina (NASDAQ:SINA) holdings?
The company currently holds 1.88 B in liabilities with Debt to Equity (D/E) ratio of 0.51, which is about average as compared to similar companies. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Sina has an asset utilization ratio of 48.14 percent. This suggests that the company is making $0.48 for each dollar of assets. An increasing asset utilization means that Sina Corporation is more efficient with each dollar of assets it utilizes for everyday operations.
Sina financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Sina, including all of Sina's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Sina assets, the company is considered highly leveraged. Understanding the composition and structure of overall Sina debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

How important is Sina's Liquidity

Sina financial leverage refers to using borrowed capital as a funding source to finance Sina Corporation ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Sina financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Sina's total debt and its cash.

How Sina utilizes its cash?

To perform a cash flow analysis of Sina, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Sina is receiving and how much cash it distributes out in a given period. The Sina cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Sale by Yan Wang of 1807 shares of Sina

Legal trades by Sina insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Sina insider trading alert for sale of ordinary shares by Yan Wang, the corporate stakeholder, on 3rd of September 2020. This event was filed by Sina Corp with SEC on 2006-11-17. Statement of changes in beneficial ownership - SEC Form 4. Yan Wang currently serves as founder and independent director of Sina [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Sina Indicators

Sina reported the previous year's revenue of 2.1 B. Net Loss for the year was (97.97 M) with profit before overhead, payroll, taxes, and interest of 1.67 B.

Our take on Sina small slip

The coefficient of variation is down to 1053.68 as of today. Sina Corporation exhibits relatively low volatility with skewness of 2.82 and kurtosis of 16.93. However, we advice investors to further investigate Sina Corporation to ensure all market statistics is disseminated and is consistent with investors' estimations about Sina upside potential.

Our Bottom Line On Sina

Whereas other entities in the internet content & information industry are either recovering or due for a correction, Sina may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither trade new shares of Sina nor drop your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Sina.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Sina Corporation. Please refer to our Terms of Use for any information regarding our disclosure principles.

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