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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?

To: vagabond who wrote (96129)	4/13/2000 12:35:00 PM
From: westpacific	Respond to of 108040

SINA info, high risk play IMO - however it is a Morgan offering and they are one of the best. Do not expect a moonshot as it is not Morgans style. This is another of those international deals which have not been filed electronically with the SEC. Consequently, specific information is extremely limited. Interested investors are urged to contact Morgan Stanley at (212) 761-5900 to obtain a paper copy of the registration statement. Sina.com operates Internet websites in China, Taiwan, Hong Kong, and North America. The sites are among the most popular in the area, generating over 16.6 page views monthly. For the 2H?99 revenues were reported at $4.8 million, although losses were in the $26.8 million range. Valuations among Asian Internet firms have been mixed. Recent IPO?s provide some perspective. China.com is a close comparable and was an $84 million deal offered on 7/13. Offered at a split adjusted $10, it closed at $33.56 for a 235.6% first day. It recently traded at $69.69, adding 107.7% in the aftermarket. Among other comparables, Pacific Internet was a $51 million deal offered 2/5/99. Offered at $17, it closed at $48 for a 182.4% first day. It recently traded at $37.50, off 21.9% in the aftermarket. Asia Info Holdings was a $120 million deal offered on 3/3/00. Offered at $24, it closed at $99.56 for a 314.8% first day. It recently traded at $56, off 43.8% in the aftermarket. Pre-offering demand has been reported to be extremely heavy. Adding to the demand is the participation of high profile investors Dell, Softbank (Japan), and Pacific Century CyberWorks (Hong Kong). Given the pre-offering demand, an expected ?Asia premium?, the relatively small number of shares in the offering, and the presence of high profile investors Dell, Softbank, and Pacific Century CyberWorks, the initial reception is expected to be very favorable (e.g., 100+%) followed by aftermarket volatility. THIS OFFERING PROVIDES A GOOD EXAMPLE OF THE DEFICIENCIES OF PAPER SEC FILINGS. There are several very important considerations about which every investor needs to be aware. The paper filing reduces the efficiency of the distribution of this critical information. For example, the relatively impressive $4.8 million in 2H?99 revenues is misleading since the majority were due to a prior software sales business, not the Internet portal. More importantly is the recent reorganization of the company to comply with Chinese government laws prohibiting foreign ownership of Internet web content. In a very complicated transaction, Sina.com has transferred the high profile China portal to a separate, affiliated company. So this offering includes only the Taiwan, Hong Kong, and North America portals. Yet the China portal is arguably the firm?s most valuable asset. The performance of these remaining portals and their associated revenues are also not available outside the paper SEC filings. Now the management has tried its best to loosely ?jury rig? rights to the China portal into the company, but the specifics or their likelihood of success are unavailable. CONSEQUENTLY, ANYONE INVESTING IN THIS OFFERING WITHOUT EXAMINING THE PAPER SEC REGISTRATION DOES SO AT THEIR PERIL.