I've been pounding the table pretty relentlessly on Sina (SINA) since late last year, and it continues to sparkle and amaze. I thought the stock was finally going to come back to earth in late February after it broke some key supports, but it pulled off a fantastic stick save. During the Japan selloff it barely blinked, only falling to the 20 day... and since then, off to the races.
This shows a good example of what to look for (technically) for those looking for new ideas - during any material selloff, try to find the stocks that are holding up the best - they tend to be the leaders out of the gate during the next move up. We saw less than 30% of stocks were holding their 50 day moving average at the depths of the selloff middle of last week - yet SINA did not even break its 20 day. That's relative strength.
SINA has definitely become one of the new leadership stocks taking the mantle from the F5 Networks (FFIV) and Riverbed's (RVBD) of the world. Starting to hear some talk the past two weeks about something I've proposed - that is a spin off of Weibo into its own IPO. (something Ebay should have done with Paypal years ago!) Seems more like a 2012 event for any potential IPO, not 2011, but just the conversation seems to have energized the bulls.
(if you are new to the name, click on the label at the bottom of the post for previous comments and why the stock is so enticing)
Best Of FMMF
- 1: Warren Buffet Piles on Europe
- 2: [Video] Jim Chanos Returns from Europe, Even More Bearish on China
- 3: A Chart to Open Our Eyes - Staggering Changes by Multinationals in Employment Behavior 00s vs 90s
- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows