CEO Investment Ignites Monster Rally In Sina Corp

em>Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Sina Corp SINA shares are trading higher by $9.00 at $49.70 in Monday's session. The firm, a leading online media company in China has received a $456M cash investment from its CEO Charles Chao. This will allow for the issuance and sale of 11M newly newly issued ordinary shares. Obviously, the Street is giving its stamp of approval to the deal as the issue has traded over $50, reaching $50.50 for the first time since August when it peaked at $51.60. The announcement instigated a sharply higher opening ($44.31 vs. Friday's close of $40.73) followed by a brief retreat to $44.18 before continuing higher. Today's rally is taking place on way above average volume as it has already traded 7.8M shares compared to its 20 day average of 1.58M, with fours hours remaining in the session.