| Stock (Symbol) | Stock Price | |
Baidu.com (BIDU) |
$133 |
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| Data is as of | Expected to Report | Sector |
May 2, 2012 |
N/A |
Technology |
| Sharek’s Take | ||
 Baidu’s (BIDU) momentum has slowed a bit. Although last quarter’s profits beat forecasts, sales missed estimates by a tiny bit. The company also lowered next quarter’s revenue guidance a bit. Shares of BIDU dropped 10% on the news, and the stock is exactly where it was when I wrote my research report last quarter.Although the numbers aren’t as pristine as they usually are, BIDU stock is still undervalued. I think this stock should be 50% higher than it is right now. |
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| One-Year Chart | ||
 BIDU stock is $133, right where it was last quarter. The P/E of 29 is also the same as last quarter.Everything looks great in the one-year chart. I’m especially pleased with the P/E of 29. The estimated Long Term Growth Rate just fell a bit from 44% to 42%. |
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| Earnings Table | ||
 Profits jumped 93% last quarter. Sales increased 82%. Sales are expected to climb 62% next quarter.BIDU only beat by two cents. Not only that but quarterly estimates decreased a bit. Annual Profit Estimates are lackluster this quarter. Clearly momentum has slowed a bit. These estimates decreased in two of the three years. Quarterly estimates really look good, so profit growth should continue the be very strong for the next year at least. |
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| Fair Value | ||
 I’m taking BIDU’s Fair Value P/E down from 55 to 45. The stock still has upside of 55% this year and could double by next year. |
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| Ten-Year Chart | ||
 I like the base BIDU is building. If or when the stock breaks out from this pattern is will have the ability make that 50-100% move I expect.Profits are expected to be up 54% this year — awesome. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
3 of 18 |
Investors were not impressed with Baidu’s latest quarter. I agree — things were good but not great and momentum has slowed. Still, the stock is undervalued by 50% and could double by next year. |
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Aggressive Growth Portfolio
3 of 8 |
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