Independent TMT Analyst

Edison Lee, CFA

Equity Bottom-Up

<ul>
<li>SINA is now trading at the largest implied negative value (US$347m) after we strip out the value of its 50.5% stake in Weibo, since the end of 2014.</li>
<li>On Oct. 12, SINA shareholders will receive a distribution of 7.088m shares of Weibo, equivalent to roughly 5 days of Weibo's average trading volume. We believe most shareholders will sell the Weibo shares.</li>
<li>SINA's CEO Charles Chao, who bought 11m shares of SINA in November 2015 at US$45 per share by borrowing US$230m from Credit Suisse, will likely…</li>
</ul>


SINA is now trading at the largest implied negative value (US$347m) after we strip out the value of its 50.5% stake in Weibo, since the end of 2014.
On Oct. 12, SINA shareholders will receive a distribution of 7.088m shares of Weibo, equivalent to roughly 5 days of Weibo's average trading volume. We believe most shareholders will sell the Weibo shares.
SINA's CEO Charles Chao, who bought 11m shares of SINA in November 2015 at US$45 per share by borrowing US$230m from Credit Suisse, will likely…


Short Weibo, Long SINA. SINA Is Trading At The Lowest Implied Value in 2 Years.

Sina Corp (Class A)

Short Weibo, Long SINA. SINA Is Trading At The Lowest Implied Value in 2 Years.