September 26, 2011 (Chinavestor) Shares of Sina Corp. (NASDAQ:SINA) fell the most among mid- to large cap Chinese stocks this morning half an hour after the opening bell. Taking a look at Chinese stocks this morning, Sina Corp. (NASDAQ:SINA) fell the most among stock with $250 million market cap or more. Vanceinfo Technologies (NYSE:VIT) is second and so on.Stocks falling hard from the internet sphere include Ctrip.com (NASDAQ:CTRP), Sohu.com Inc. (NASDAQ:SOHU), NetEase.com (NASDAQ:NTES) and Baidu.com Inc. (NASDAQ:BIDU).
While Sina Corp. (NASDAQ:SINA) was not among the most oversold China stocks BEFORE the open, it is certainly oversold by now. But besides the overbought/oversold report, historical data suggests Sina Corp. (NASDAQ:SINA) is going to make a comeback SOON!
Sina Corp. (NASDAQ:SINA) fell from $110.19 to $86.79 last week and lost another 11.5% by 10:00 A.M. on Monday, a staggering 27.5% loss in less than six days! This is without precedent YTD.
We looked up all instances when Sina Corp. (NASDAQ:SINA) lost over 10% in just one week to see what it did FOLLOWING big drops. Here are our findings.
Sina Corp. (NASDAQ:SINA) Big Weekly Drops - and Recovery Next Week
There were five instances when Sina Corp. (NASDAQ:SINA) lost over 10% from Friday to Friday. The good news is that four out of five instances the stock made a SIGNIFICANT COMEBACK the week after the drop. In fact, the average return of those weeks were 8.28% for the next five days.
Historical data suggests that there is a 80% chance that Sina Corp. (NASDAQ:SINA) will make a comeback this week. Investors with cash have a chance to make quick profits on Sina Corp. (NASDAQ:SINA) if history was any guide to the future.