Technology stocks we love

Sina.com, the number one online portal in China, is kind of like a combination of Yahoo, YouTube and MySpace. The website makes money by selling advertising on its pages, attracting users with blogging, video broadcasting, social networking and news coverage.

The company has been growing very steadily in recent years thanks to China's robust economy. Stephen Ju, an analyst at RBC Capital markets, expects Sina to continue to do well in the next few years as a rapidly emerging middle class in China should translate into even more Internet users in the world's most populous nation.

And as advertisers ramp up for the Olympics, Sina will certainly get a boost. But Tian X. Hou, an analyst with Pali Capital, says Sina has great potential beyond the Olympics as well. Among the new features Sina has added to its site are celebrity blogging and a relationship with soccer's English Premier League. Soccer is the most popular sport in China.

Sina is trading at 23 times earnings for 2008 and analysts expect earnings growth of 29%, on average, over the next five years. That makes Sina a slightly better bargain than another Chinese Web stock that came up on our radar. Sohu, a portal that is increasing its presence in the online gaming market in China with its gaming site 17173.com, trades at 25 times this year's earnings estimates.



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