| Stock (Symbol) | Stock Price | |
Baidu.com (BIDU) |
$105 |
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| Data is as of | Expected to Report | Sector |
November 12, 2012 |
N/A |
Technology |
| Sharek’s Take | ||
 Baidu has been weak lately on concerns of competition coming from Quihio 360 (QIHU). I’ve previously covered this story in Stock News, so I just want to go over some recent news. Quihoo’s just came out with its new search engine in August and immediately grabbed a 10.5% slice of market share. Baidu’s Market share dropped from 85% to 80% when this happened. Since then, Quihoo has given back share and Baidu has gained some — almost every week. Don’t worry about Baidu’s market share.Now BIDU stock could bolt higher if the company can stop lowering estimates. Management has been guiding revenue estimates down just a bit. I’m sure that’s holding the stock back. Now that Baidu’s market share has stabilized, the company should be in good shape. This stock is really undervalued and could double in the short-term. |
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| One-Year Chart | ||
 Poor BIDU. All it does is make money. Yet the stock is being punished. Profit growth continues to be over 60%, yet the P/E has fallen from 26 to 17 since last quarter. That’s too much. I bet BIDU spiked to $150. |
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| Earnings Table | ||
 Sales grew 50% year-over-year last quarter and were 15% higher than last quarter’s figure. Profit growth was 63%. This is a stock to be loved, not hated.BIDU beat the street by a healthy 9 cents last qtr, but I don’t know if it will so so well this quarter since this is really the first whole quarter of Quihoo competition. Annual Profit Estimates came down a healthy amount on the back of management’s slightly negative outlook. Quarterly estimates look good but just came down ever-so-slightly. |
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| Fair Value | ||
 I still feel BIDU is worth 40 times earnings. This stock could be one of 2013’s big winners |
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| Ten-Year Chart | ||
 BIDU has long term support around $100. Note this stock has corrected before only to rebound in a big way. Profit growth is expected to be 57% in 2012. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
6 of 16 |
Baidu is holding on to market share just fine. Investors are overreacting. This company is still growing at 50% and the stock is severely under appreciated. This should be a big winner in 2013 — or maybe sooner. BIDU is too low to go lower. |
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Aggressive Growth Portfolio
5 of 9 |
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