With shares of SINA Corporation (NASDAQ:SINA) trading around $41.68, is SINA a BUY, a WAIT AND SEE, or a STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
Sina hit a 52-week low of $41.25 per share on December 5. The stock has trended downwards since the middle of September and suffered a sharp sell off on November 15 when it issued fourth-quarter guidance that came in below analyst expectations.
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Some feather tussling at the Securities and Exchange commission on December 3 put the nail in the coffin, pushing the stock down 3 percent and toward its current lows.
E = Equity to Debt Ratio is as Close to Zero as it Gets
Sina’s debt-to-equity ratio is within a rounding error of zero. This is a strong position for any company to be in, but does not differentiate it so much from its major competition. NetEase, Inc. (NASDAQ:NTES) boasts the same debt-to-equity ratio, while Sohu.com (NASDAQ:SOHU) clocks in at just 0.20.
It’s also important to consider total cash and total debt, which for Sina is $696.25 million in cash, and no debt. NetEase tops the category with $2.38 billion in cash and no debt, while Sohu claims $894.25 million in cash and $222.35 million in debt.