According to Laureate BVI, China’s Sina (SINA) is preparing to IPO Weibo, it’s version of Twitter with an US$8 billion valuation, for this reason Sina (Sina) stock could soar 50% in market price.
Weibo IPO will Boost Sina Corp Stock Price 50%
PR-Inside.com: 2014-03-12 22:51:35
Laureate BVI values Weibo IPO between US$6 billion to US$10 billion based on similar social media platforms such as Twitter (TWTR) and Facebook (FB).
Laureate reports, shares of Sina (NASDAQ: SINA) the parent company of Weibo are currently trading at US$66.72. Sina (SINA) has a 1-year low of US$45.54 and a 1-year high of US$92.83. The stock’s 50-day moving average is US$69.76 and its 200-day moving average is US$78.75.
Sina reported fourth-quarter 2013 profits of 39 cents per share which beat Zacks Consensus Estimate of 44 cents per share. Revenues increased 7.0% yoy to US$192.3 million, however Zacks Consensus Estimate was for US$197.0 million.
“It’s important to note that US$71.4 million of the US$192.3 million of Sina Corp’s earnings came from Weibo, it’s microblogging property,” according to Laureate BVI CEO Peter Tasca.
Tasca further states, "If you break down Weibo’s US$71.4 million in earnings you see explosive growth this asset. It’s ad revenue increased 163% yoy to US$56 million and its non-ad revenue grew 114% to US$15.4 million, this division is worth more than its parent company Sina.”
Laureate’s research states, Sina is an attractive buy due to its access to Weibo. Sina owns 71% of Weibo, with a current market capitalization of US$4.55 billion and Weibo estimated market Capitalization of US$6.0 to US$8.0 billion, Sina target price is US$90.00.
Tasca states, “Sina target price is based on the valuation given to Twitter (TWTR) which trades at 45 times sales and Facebook (FB) which trades at 23 times sales. ”
Laureate reports, another distinctive factor to Sina spinning off Weibo is that it could become an acquisition target for Alibaba which already owns 18% of the company.
Weibo IPO is expected to be released in June of 2014, Laureate is issued a buy recommendation on Sina with target price of US$90.00 for the stock.
About Laureate Trust
Laureate Trust provides expert portfolio management that achieves optimal results. The proven trading strategies are based on four principles: diversification, technical analysis, trend following and risk management, which combined have the potential to profit from any economic situation. In 2013 this multiple platform strategy returned +23.01% net of all fees.
In 2014 Laureate launched a Referral Fee Programme that will pay 2% commission of the initial deposit and then a management fee for the life of the account. “We want our partners to benefit from every bit of success they help us generate” said Tasca.
For more information on Laureate Trust, contact Private Client Group +1-310-492-5301.
468 North Camden Drive
Beverly Hills, CA 90210
# 440 Words