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Nine Masts investor urges buying Weibo through parent Sina

Published 06/07/2017, 11:11 AM
© Reuters.  Nine Masts investor urges buying Weibo through parent Sina
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  • Investor James Tu likes Chinese microblogging site Weibo (WB +4.3%), but with the stock relatively expensive, recommends a different way of getting in: through its parent Sina (SINA +3.8%).
  • Presenting at the Sohn Hong Kong conference, Nine Masts co-founder Tu notes Sina's stake in Weibo (which has rallied 166% over the past year) is set to decline and that the implied price/share for Weibo in Sina's share price is $35.55 (vs. the current $78.74).
  • The best risk/reward approach may be convertible bonds, though, Tu says: "Buy Sina convertible bonds, which give you a balanced exposure to Sina, which has a chairman who is doing everything in his power to close the value discount in Sina by either spinning off Weibo shares or buying large amounts of Sina shares."
  • Now read: Weibo, A Winner In China's Internet Celebrity Economy


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