SINA: Web portal profits in China

Posted Sep 20th 2007 10:55AM by Steven Halpern
Filed under: Google (GOOG), China, Newsletters, Bargain Stocks, Stocks to Buy

China stock expert Jim Trippon recently issued new buy recommendation on SINA Corp. (NASDAQ: SINA), which operates four Chinese-language web portals.

In his China Stock Digest, the advisor says, "We believe that SINA has a degree of diversity, brand strength and earnings growth potential that puts it ahead of the competition."

Trippon explains, "We believe SINA is uniquely positioned to rise in profitability with increasing web penetration in the Mainland and beyond. SINA Corporation is in the ambitious business of bringing Chinese language web access to Greater China and the rest of the world."

SINA, he notes, operates four Chinese-language web portals, serving the PRC, Hong Kong, Taiwan, as well as Chinese-speaking people in North America. The company has more than 230 million registered users worldwide and 600 million daily page views.

According to the advisor, "The company's portals in rich Chinese-speaking and English-speaking markets have added to SINA's growing cash flow with new services like eChineseLearning, an online language school specializing in one-on-one, live audio and video instruction."

Trippon observes, "Although it's one of China's top Internet portals, SINA lagged behind Baidu (NASDAQ: BIDU) in search traffic in early 2007. But a recently announced partnership with Google (NASDAQ: GOOG) is expected to power up ad buying at SINA, thanks to the perceived power and prestige of the Google name in China."

He adds, "SINA boasts that it has over 42 million active users for a variety of fee-based services. SINA claims to be the most recognized Internet brand name, both in the People's Republic of China (PRC) and among Chinese communities globally."

Because of its high profile, penetration and prestige, notes Trippon, SINA has been called an essential buy for advertisers conducting branding campaigns in the increasingly brand-conscious Chinese consumer market."

The company, he notes, says it expects to benefit from the 2008 Beijing Olympic Games as Olympic partners and sponsors start to place more of their budget on the Internet and its Olympic Coverage Alliance begins to pay off.

Trippon states, "We believe SINA is an aggressive player with huge market potential that extends well beyond mainland Chinese borders. SINA has a unique opportunity to become a global brand name and a must-see Web portal for the Chinese community on every continent."

The advisor concludes, "The company is in a solid cash position with a reported debt of $100 million backed by a cash position estimated at $160 million and annual revenues exceeding $200 million. We believe that SINA has a degree of diversity, brand strength and earnings growth potential that puts it ahead of the competition."

Each day, Steven Halpern's TheStockAdvisors.com features the latest stock picks and investment ideas from the nation's leading financial newsletter advisors.

Tags: asian stocks, baidu, bidu, china internet stocks, china stock digest, china stocks, featured, goog, google, jim trippon, sina, steven halpern, thestockadvisors.com

Print this

Reader Comments (Page 1 of 1)

9-20-2007 @ 10:55PM

John Singer said...

Cramer has preferred BIDU since the 120 level citing higher growth. Wish I had gotten in at that level! - http://www.stocktagger.com/2007/09/jim-cramer-picks-baiducom-bidu-as-china.html

9-30-2007 @ 6:15AM

Carina said...

China, which has at least 150 million internet users, second only to the United States, is seen as a key prize in e-commerce. No wonder every country is in the development of the China’s network.
The rise of China presents new economic, political and social realities that demand greater U.S. engagement at every level. As the foundation of that engagement, we urgently need to raise the number of Americans who can demonstrate a functional proficiency in Chinese.
AmeriChinaB2B Inc. which runs the most visited US-China business to business(B2B) web platforms. launches a reverse direction Alibaba platform. AC Ali, to help US businesses export to potential buyers in China.
Compare with Alibaba, AmeriChinaB2B is in the native country of U.S.A., closer to the American customer, understands the American customer’s demand, in a sense, American customer can believe in AmeriChinaB2B even more.
For more information, please check: http://www.acb2b.com AmeriChinaB2B, http://www.acb2b.cn AmeriChinaB2B.