The only thing that matters if making money is your number one priority - and let's be honest about this - is not whether it is rational or ethical to buy a stock that is driven to insane levels by greedy momentum players, but rather what is likely to happen as we approach the earnings release date? Baidu.com has a good story behind it - a lot of traders think so - but at this point in the game technical movements as reflected in daily chart activity are driving the stock price. And the chart still looks good.
You believe that the Longs are irrational based on the fundamentals. You would not touch the stock. But you have touched the stock by selling it short. You did admit, didn't you, that you have a short position in BIDU?
Are you any less irrational that the Longs you scoff at? By not taking the "insane" momentum factors fully into account, you and other short-sellers have misjudged the direction of this powerful stock.
I have fulfilled my mission if I have discouraged others from selling stocks short prematurely.
A lot of people short any stock that is "overvalued," without really understanding what is going on. A stock that is "overvalued" can become twice as "overvalued" and decimate your account. Valuation is only the very FIRST step in deciding which stock is a good short.