| Stock (Symbol) | Stock Price | |
Baidu.com (BIDU) |
$118 |
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| Data is as of | Expected to Report | Sector |
December 12, 2011 |
Jan 30 |
Technology |
| Sharek’s Take | ||
 Baidu is cranking right now. The company posted another awesome quarter last month. The number of advertisers on Baidu.com increased 11% but revenue per-subscriber jumped 65%. That means a little more time spent opening new accounts and a lot more money coming in from existing clients.Investors don’t even care that things are great — people are more concerned with being scared of the stock market. Meanwhile BIDU’s P/E has gone from 52 to 27 this year, making this stock undervalued with huge upside. I expect 2012 to be a blockbuster for BIDU stock — its got some catching up to do. |
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| One-Year Chart | ||
 BIDU touched an all-time high just before this stock market dove. Last quarter’s great results caused a little pop but then the stock went back down to the bottom of its base.In the last four quarterly research reports, BIDU’s P/E has gone from 52 to 49, 49 and now 27. Estimates show profit growth of 76% and 66% ahead with the Long Term Growth Rate 50%. |
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| Earnings Table | ||
 Profits jumped 87% on a 94% increase in sales. Revenue growth has been 94%, 87%, 77% and 101% the last four quarters.BIDU beat by 2 cents last quarter, and there’s an awesome trend of upping and beating goign on. If there’s anything not-so-special about this report, it’s that Annual Profit Estimates didn’t sky higher this quarter. They only increased a little. Quarterly estimates look amazing for the next two quarters, and management just upped next quarter’s revenue estimate so momentum is still strong. |
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| Fair Value | ||
 BIDU is usually worth 60-to-65 times earnings. Even with a P/E of 55 this $120 stock is worth $240. 2012 should be a big year for this stock. |
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| Ten-Year Chart | ||
 Bidu’s consolidating in the ten-year chart. 2012 profit growth is expected to clock in at 93%.There’s been years that this stock has doubled after a so-so year. The stock went from $72 to $85 in 2006, then went to $198 the next year. 2011 is like 2006, I think 2012 will be great just as 2007 was. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
2 of 20 |
Baidu’s is set up for a stellar 2012. The company is growing at 90% and the P/E is only 27. The P/E will have to go up and the stock could double next year. |
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Aggressive Growth Portfolio
2 of 10 |
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