After being a superstar stock from late 2010 til spring 2011 on the back of its Twitter like offering Weibo, Sina (SINA) was crushed in this correction - falling by roughly half from its mid April highs in the mid $140s. Indeed, the previous 12 sessions going into yesterday it had fallen in 11 of them, losing some $50. Clearly this name was in the hands of the momo crowd.
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But those type of selloffs lead to substantial oversold bounces, and moves like we saw yesterday keep bringing back speculators like a moth to a flame. In one day Sina nearly advanced 20%, partly due to a reiteration of a positive rating.
- “The recent share sell-off offers a great entry point for investors,” Susquehanna International Group LLP analysts including C. Ming Zhao wrote in a report e-mailed to clients. They maintained a “positive” rating on Sina and a 12- month price target of $136.
For someone like myself, I'd rather see a more stable stock - since I do like this name long term. But it appears, at least for now, Sina will remain a quite volatile name.