| Stock (Symbol) | Stock Price | |
Baidu.com (BIDU) |
$130 |
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| Data is as of | Expected to Report | Sector |
May 26 |
Jul 18 |
Technology |
| Sharek’s Take | ||
 Baidu.com (BIDU) is a great stock right now. Profit’s have been more than doubling and the P/E is reasonable compared to the stock’s historical standards. Also, the stock is off its highs, so if you wanted to buy BIDU (or get some more) this is the time.
We are half way through a huge movement for online marketing in China. “Sales of text-based search ads in China are expected to jump from about $1billion now to $4billion by 2012” source: Investors.com. Last quarter I wrote “Of the company’s 276,000 subscribers only about 1000 are large businesses — leaving HUGE growth opportunity.” We are still in the early stages of Baidu’s life-cycle, explosive growh continues. |
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| One-Year Chart | ||
 BIDU peaked at $156 in late April. Now its at $130 and the market’s in a correction. I like the spot this stock is in — nice little correction, not too deep — this is a good time to buy shares.
Profit growth has been triple-digits in each of the last four quarters. Estimates for the next two quarters are exceptional — this company is rolling and the stock is too. |
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| Earnings Table | ||
 Profits jumped 120% as the explosive growht continues. Revenue rose 77% last quarter down from 101% 2QtrsAgo, which was the best in a year.
BIDU beat by 3 cents. Analysts had upped that number three times before. Annual Profit Estimates continue to increase. 2012 and 2013 estimates rose by 11% and 12% respectively. Profits are set to expand 73% this year, 50% next year and 40% the year after. Quarterly estimates show the explosive growth comtinues. Even 4QtrsOut the estimate is 59%. Also, each time BIDU reports the quarterly estimates get guicy increases. |
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| Fair Value | ||
 BIDU has good upside this year, but next year is what really looks good. Using my analysis, this stock will be worth double in a year. Whether it gets there is another story. BIDU is worth 65 times earnings. |
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| Ten-Year Chart | ||
 The numbers look exceptional in the ten-year chart. Last quarter this stock was exptended, now with the correction in place the stock is free to go up again.
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. I sold the stock when BIDU jumped to $18 in early 2009 and bought back at $43 (10/8/2009). |
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| Power Ranking | Bottom Line | |
Growth Portfolio
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Baidu’s explosive growth continues. I’m really excited about quarterly estimates — this company should continue to grow at 60% or more. For 49 times earnings the stock sells at a discount. Looking at the charts, the stock is fresh and ready to continue higher. BIDU is the 2nd best stock in the 22 stock Growth Portfolio Power Rankings and the 10 stock Aggressive Growth Portfolio. I like Apple (AAPL) a little more because AAPL has a really low P/E and could make a bigger move higher as it heads to its Fair Value.
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Aggressive Growth Portfolio
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