| Stock (Symbol) | Stock Price | |
Baidu.com (BIDU) |
$124 |
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| Data is as of | Expected to Report | Sector |
August 21, 2012 |
N/A |
Technology |
| Sharek’s Take | ||
 Baidu (BIDU) had an awesome quarter and the stock jumped on the news — from $107 to $115 day one and then later reached $135 before backing off. When I take a step back I see this stock hasn’t moved since February 2011. The P/E in the past year has fallen from 41 to 26, so BIDU is cheap. Eventually this stock should rock.
Another Chinese competitor is prospering. Its name is Qihoo Technology (QIHU) and it gets 10% of daily unique visits to its search engine. Qihoo isn’t a big challenge to Baidu, but QIHU looks like a good stock and I am researching it now. I may but it in the future. Baidu gets almost 80% of online ad revenue in China, it’s the gorilla in the room. |
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| One-Year Chart | ||
 This stock hasn’t moved in the last year but profit growth has been spectacular. A year ago the P/E was 49 but profits had just grown 106%, so the stock was worth a higher P/E (65?). The P/E of 26 makes this stock so cheap. I think the stock will double by the end of 2013. |
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| Earnings Table | ||
 Profits jumped 72% last quarter on a 63% increase in sales. The number of advertisers was up 18% from last year and revenue per advertiser grew 35% to $2,440. Small and medium sized businesses are Baidu’s bread-and-butter.
The beat of 12 cents a share last quarter was more than the previous three quarters combined. Quarterly estimates show solid growth of 52%, 42% and 45% coming the next three quarters, but didn’t increase. |
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| Fair Value | ||
 BIDU is rapidly growing while being undervalued and possesses huge upside. |
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| Ten-Year Chart | ||
 Last quarter I said “I like the base BIDU is building” but this quarter I’m bored with it. This stock is due for another big move, and from the looks of the Fair Value above it seems like that move could be a double. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
4 of 16 |
Baidu is clicking along at a 70% rate yet has a P/E of only 26. This is an awesome time to accumulate BIDU but there are a few stocks that have more momentum today. BIDU is ranked 4th in both the 16 stock Growth Portfolio and 8 stock Aggressive Growth Portfolio Power Rankings. |
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Aggressive Growth Portfolio
4 of 8 |
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