| Stock (Symbol) | Stock Price | |
Baidu.com (BIDU) |
$141 |
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| Data is as of | Expected to Report | Sector |
August 6, 2011 |
Oct 17 |
Technology |
| Sharek’s Take | ||
 Baidu is in a zone. The stock has everything I could ask for:
BIDU is a stellar stock to own, I wouldn’t consider selling it even if the stock market were to crash. I learned from that mistake, as I sold BIDU in 2009 only to buy it back after it doubled. More on this later. |
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| One-Year Chart | ||
 BIDU hit an all-time high just before this stock market took a dive. It did so after earnings were released. The chart shows nice moves higher, with corrections to shake out the weak investors.
Profit growth has been triple-digit in each of the last four quarters and Estimates for the next two quarters are exceptional. The P/E of 49 is lower than the 65 I think it should be. This stock is in a zone. |
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| Earnings Table | ||
 Profits more than doubled for the sixth consecutive quarter. Revenue rose 87% LastQtr compared to 77% 2QtrsAgo and 101% 3QtrsAgo.
BIDU just beat the street by 7 cents, the best beat in a year. There’s a super trend of upping and beating going on here. Profit growth in future quarters could be triple digit as well. Annual Profit Estimates jumped out-out-of-bed for the second straight quarter. This company is in a zone. 89% profit growth is expected this year, 51% growth is expected next year, 40% in 2013. Quarterly estimates are awesome. At least 70% growth expected the next three quarters and these figures continue to climb. This is an awesome company. |
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| Fair Value | ||
 I continue to believe BIDU is worth 65 times earnings. With a P/E of 49 this stock is undervalued. Even at the all-time high of $166 the stock had a P/E of 57 (still too low). I think this stock can double by the end of 2012. |
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| Ten-Year Chart | ||
 Bidu’s ten-year chart shows why I discourage selling of top stocks during bear markets. I first purchased BIDU at $9 (5/11/06) and the stock went to $40 before dropping to $10 in the bear market of 2008. Then I sold when BIDU went to $18 in early 2009, thinking I could get in again cheaper. I didn’t. The stock took off higher and I bought back at $43 (10/8/2009). |
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| Power Ranking | Bottom Line | |
Growth Portfolio
2 of 20 |
Baidu’s is clearly in a zone. The numbers look fantastic and continue to get better. Both profits and the stock could double next year. BIDU is the 2nd best stock in the 22 stock Growth Portfolio Power Rankings and the 10 stock Aggressive Growth Portfolio. |
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Aggressive Growth Portfolio
2 of 10 |
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