CEO Investment Ignites Monster Rally In Sina

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

Sina Corp (NASDAQ: SINA) shares were trading higher by $9.00 (22 percent) at $49.70 in Monday's session. The firm, a leading online media company in China, has received a $456 million cash investment from its CEO Charles Chao. This will allow for the issuance and sale of 11 million newly-issued ordinary shares.

Obviously, the Street is giving its stamp of approval to the deal as the issue has traded above $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 7.8 million shares compared to its 20-day average of 1.58 million with four hours remaining in the session.